Lagos Offsets Retirees Debt By N35 Billion

Lagos Offsets Retirees Debt By N35 Billion

By Wires Editor | The Trent on January 22, 2022
Babajide Sanwo-Olu
Babajide Sanwo-Olu, the governor of Lagos State

Lagos State government has said that over N35 billion was spent to offset the debts of retirees in the state, saying that the administration is working hard to clear the backlog before the end of its tenure.

This was made known by the state Commissioner of Establishments, Training, and Pensions, Mrs. Ajibola Ponnle, during the Lagos State Pension Commission, LASPEC, media parley in Lagos last Friday.

Ponnle stated that Lagos inherited N50 billion debts in accrued rights at the inception of the administration, but has paid over N35 billion to 9,218 retirees as at the end of December 2021, saying the administration’s intention is to clear the entire backlog at the end of its tenure.

She explained that with a new pension scheme, the contributions rate for employer has increased to 10 percent while the employer contributes eight percent from the former 7.5% equal share, making the retirees to earn more.

The commissioner reiterated its commitment to the welfare and financial freedom of all retirees of the Lagos State Public State, saying that with the introduction of innovative technology, the online biometric verification, pensioners in the state are leveraging on this technology to enable them participate in the statutory audit exercise from the comfort of their homes within the country and in diaspora, a biannual exercise that will check payment of monthly pensions to deceased pensioners.

She stated; “I would like to affirm that the Lagos State Government under the current administration of Babajide Olusola Sanwo-Olu is committed to the speedy resolution of all pension issues in the State.

“We presently have a systematic process to clear the backlog inherited from prior administration with payment of 1 billion in accrued rights being paid to retires every month, making Lagos State the first State make retirees in the state have access to their RSA, with the State’s up to date pension payment as at when due.

“Despite the global pandemic and its impact on the Nigerian Economy, the State Government has made continuous monthly payments of Accrued Pension Rights into Retirement Savings Accounts a priority to ensure retirees have access to their retirement bond benefits.”


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