TheCable

President Muhammadu Buhari has granted approval for an increase in pension to reflect the new minimum wage.

Ekpo Nta, acting chairman, National Salaries, Incomes and Wages Commission (NSIWC), disclosed this while addressing reporters in Calabar, capital of Cross River state, on Friday.

In April 2019, Buhari signed the new minimum wage act into law. The law stipulates an increase from N18,500 to N30,000 as minimum wage in Nigeria.

Nta said Buhari’s approval indicates an increase in payment of pension to pensioners under the pension scheme, arising from increment in the minimum wage.

He noted that the increment, which is with immediate effect, will be backdated to April 18, 2019, when the minimum wage was signed into law.

“I am very delighted to inform you that as soon as Mr. president gave his approval, the circular indicating the pension increases for pensioners under the defined pension scheme was issued on April 29 to all relevant stakeholders for immediate implementation with effect from 18th April, 2019,” he said.

“The national minimum wage act 2019 legislated that the national minimum wage of N30,000 should be applicable to all workers and employees in the federal republic of Nigeria, except for exceptions as prescribed under the act.

“Thereafter, the federal government and unions held negotiations in respect of consequential adjustments of salaries from the new minimum wage which was finally concluded and circulars issued in 2019.”

Nta said the reviews were done in collaboration with other relevant stakeholders like the National Union of Pensioners (NUP), pension transition administration department, budget office of the federation, federal ministry of finance, office of the secretary to the federal government, among others.

He said the outcome of the collaborative meetings was considered and approved by the board of the commission in 2019, and forwarded to the presidency for approval.

“As soon as the salary adjustments were concluded, the National Salaries, Incomes and Wages Commission held several meetings to increase pensions under the defined scheme,” he said.

“I want to seize this opportunity to thank all stakeholders and our patient pensioners for bearing with the processes that has finally culminated in the successful conclusion of the matter.

“I look forward to a more proactive and seamless implementation of subsequent increases in future so that our senior citizens who served their country will enjoy the fruits of their labour from a grateful country.”