Delta Auditor-General Defends Transparent Disbursement of N40 Billion Pension Funds
ASABA/Nigeria: The Auditor-General for Local Governments in Delta State, Mr Ukpaka Ikenna, has assured the public that the disbursement of N40 billion in pension funds to retirees of the state’s 25 local government councils and Local Government Education Authorities was conducted with utmost transparency and due process. He strongly refuted allegations of financial impropriety, insisting that no pensioner was shortchanged.
The statement follows protests by pensioners under the Forum of Local Government Retirees (FOLGR) and the Association of Retired Primary School Teachers (ARPST), who alleged “unwholesome deductions” from their pensions and gratuities. They accused Dr Kingsley Emu, Secretary to the State Government, and Hon Victor Ebonka, the immediate past chairman of the Association of Local Government of Nigeria (ALGON), of mishandling the funds.
Reacting to these claims, Mr Ikenna dismissed the allegations as baseless, explaining that pension funds are securely domiciled with the Central Bank of Nigeria (CBN) and remain beyond the reach of government officials. “Each retiree’s accrued rights are transferred directly to their Pension Fund Administrator (PFA), ensuring complete accountability,” he stated.
Mr Ikenna revealed that between October 2023 and October 2024, a total of N39.6 billion had been paid to 6,675 retirees by the Bureau of Local Government Pensions. He explained that accrued rights are meticulously calculated based on factors such as age, salary grade level, career progression, and years of service.
Contrary to the accusations, the Auditor-General commended the committee led by Dr Emu for its integrity in overseeing the disbursement process. “The Kingsley Emu-led committee discharged its duties faithfully, demonstrating commendable financial expertise and adherence to due process,” he said. “The payments were directly handled by the Bureau of Local Government Pensions and the PFAs, supervised by PENCOM, with funds securely managed by the CBN.”
Corroborating Mr Ikenna’s account, pension consultant Mr Chidiebere Orji elaborated on the rigorous computations used to determine retirees’ benefits. He highlighted the transition to the Nigerian Pension Reform Act of 2004 (amended in 2014), which introduced the Contributory Pension Scheme (CPS). According to Orji, accrued pension rights represent benefits earned up to the adoption of the CPS on 31 March 2011.
Mr Orji noted that a previous consultant’s errors in financial assumptions were rectified by his firm. These errors included an incorrect discount rate, unrealistic future salary increase assumptions, and an inaccurate pension commencement age. “We ensured the computations adhered to actuarial standards and reflected the correct commencement age of 60 years or 35 years of service, as stipulated by the state civil service rules,” Orji explained.
He further emphasized that no retiree was defrauded during the process. “The calculations were thorough, transparent, and aligned with the requirements of the new pension regulations. The claims of malpractice are unfounded,” he concluded.
The Auditor-General promised a comprehensive report on the disbursement to provide clarity and reaffirm the government’s commitment to accountability in managing pension funds.
