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States to clear all outstanding pensions after fuel subsidy removal – NGF

 


The Nigeria Governors’ Forum (NGF) says states will clear all outstanding pension liabilities after the removal of fuel subsidy in 2022.

 

The governors’ forum said this at its 36th teleconference meeting on Wednesday.

 

The federal government had said that it would end fuel subsidy by 2022 and replace it with a N5000-a-month transportation grant to the poorest Nigerians.

 

In a communique released after the meeting, Kayode Fayemi, chairman of NGF and governor of Ekiti, said the governors have resolved to include settlement of all outstanding pension obligations as part of the social compact with citizens for the removal of fuel subsidy.

 

Fayemi further affirmed governors’ support for the federal government’s transport palliative scheme.

 

“On the strategy to build a sustainable Contributory Pension Scheme (CPS) for State Governments that will also be capable of clearing outstanding pension liabilities, members listened to a presentation by the Chief Executive of AVA Capital, Mr Kayode Falasinnu, and resolved that the settlement of all outstanding pension obligations should be included as part of the social compact with citizens for the removal of fuel subsidies,” the communique reads.

 

“With respect to the required legal and institutional changes required to facilitate a successful CPS transition in all States, State Commissioners of Finance will be mandated to ensure that States meet the guidelines for the implementation of Contributory Pension Schemes by State Governments, including the enactment of a pension law, the establishment of a pension board and the adoption of a transition framework for each State.”

 

The forum also said it would review the ongoing move by the federal government to privatise 10 power plants located across the country.

 

It described the power plants as “critical national assets”.

 

It said the 36 state governments currently hold 53 percent equity while the FG holds 47 percent equity in the ten power plants.

 

“On the proposed privatization of the 10 generating plants located across the country under the National Integrated Power Projects (NIPPs), members received a detailed presentation by the Director-General of the Bureau of Public Enterprises, Mr. Alex A. Okoh, and resolved to review and communicate through their board representatives, their assessment and position on the privatization of what they consider critical national assets,” the communique adds.

 

 “States currently own a total of 53% equity in NIPPs while the Federal Government owns a 47% stake.

 

“On the National Social Register and the Rapid Response Register as critical tools for rolling out cash transfer programs, members received a presentation from the National Coordinator of the National Social Safety Nets Coordinating Office, Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development, Mr. Iorwa Apera.”

 

According to the communique, the governors also listened to Shubham Chaudhuri, World Bank’s country director for Nigeria, on the rollout of a World Bank-financed $800 million facility designed to fund a large-scale conditional cash transfer (CCT) program in the country.

 

The forum, thereafter, decided that each state governor will establish and chair a steering committee to oversee the conditional cash transfer (CCT) initiative.

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