PENGASSAN to PenCom: Address oil sector pension disparities… many retirees are suffering

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has asked the National Pension Commission (PenCom) and oil firms to tackle pension disparities affecting retirees in the oil and gas industry.

Festus Osifo, PENGASSAN president, spoke on the future pension in the industry at a one-day summit organised by the association on Thursday in Abuja.

Speaking at the event, Osifo said many retirees under the defined benefit schemes (DBS) are suffering because their pension payments have remained stagnant.

He said the financial strain on retirees had intensified due to rising inflation and the continued weakening of the naira.

“We have observed with deep concern that many of our retirees are going through hardship because their pensions have remained static for years,” Osifo said.

“Pensioners who retired decades ago now earn benefits that no longer reflect the cost of living.

“Some retired as far back as 1990 or 2010, what they take home monthly today has lost its value due to inflation and the fall of the naira.”

Osifo said while only a few closed pension fund administrators (CPFAs) reviewed benefits regularly, most retirees were left at the mercy of management decisions.

“In about 90 per cent of the closed pension schemes, the benefits do not grow,” he said.

“The retirees depend solely on management’s goodwill for increments.”

The union leader urged PenCom and major oil firms, including Chevron, TotalEnergies, ExxonMobil and NNPC, to revisit actuarial assumptions and improve retirement benefits.

He reiterated PENGASSAN’s dedication to the welfare of active and retired members, stressing that the association would continue to advocate for equity in pension administration.

“We will engage the management of these organisations to restore dignity to our retirees,” he said.

“We will not rest until retirees in the oil and gas sector are treated with the dignity they deserve.”

On her part, Omolola Oloworara, PenCom’s director-general, assured participants that the commission would enhance its monitoring of CPFAs.

She said PenCom remains committed to building trust in the pension system through strong oversight, compliance measures and sustainable investment strategies.

“Our goal is to sustain confidence in the pension system while ensuring that retirees’ funds are safe and managed responsibly,” she said.

Oloworara was represented by Abdulqadir Dalhatu, the head of the investment supervision department at PenCom.