The Nigeria Union of Pensioners (NUP) has decried the worsening plight of its members, lamenting that many pensioners, especially those at the state level, still earn as little as N5,000 monthly despite the rising cost of living.

Speaking in an interview with Saturday PUNCH, the General Secretary of the Nigeria Union of Pensioners, Actor Zal, said most state governments had failed to prioritize the welfare of their retirees, disclosing that only 13 states were currently paying pensions and gratuities regularly.

“Many of the state governments do not treat their pensioners well, unlike the federal retirees, who are better off because their minimum pension is N32,000. Some of the state pensioners receive as low as N5,000 as a monthly pension. What can N5,000 do for someone in our present economic condition?

“The cost of living is very high, and things are very expensive, and the pension cannot sustain them. As far as our union is concerned, we will always cry out for more consideration in terms of the high cost of living, and we will continue to plead with the government to do everything possible to see that pensioners are well taken care of,” Zal said.

He faulted the Federal Government’s pension-backed loan scheme, arguing that most retirees lack the financial means to repay them.

Recall that the government, through the Nigerian Consumer Credit Corporation, launched a pension-backed loan scheme designed to empower retirees.

The initiative, launched in collaboration with Leadway Trustees and Optimus Bank, offered retirees access to loans, starting from N50,000, with the maximum benchmark to be determined by the size of the pension income.

But reacting to the initiative, Zal insisted that the loan scheme would not solve pensioners’ problems but rather compound their woes.

“As pensioners, where will they get money to repay a loan? Is the government going to recover the loan from the meagre pension that pensioners earn?

“The idea of the loan scheme is like fetching water with a basket. The loan scheme is not the solution to pensioners’ plights; in fact, it may compound issues,” he said.

NUP also reiterated its demand for a N60,000 minimum pension to help cushion the impact of inflation on retirees, while appealing for compulsory health insurance coverage, subsidised transportation, and food support for pensioners.

According to the NUP, the soaring cost of living and the high prices of goods and services have made it almost impossible for most retirees to survive on their current earnings.

Zal also called for an urgent review of the contributory pension scheme, saying that its implementation has left many retirees struggling with meagre benefits.

He urged the government to ensure that any future increases in minimum wage or pension were reflected in both the old and contributory pension schemes to guarantee fairness and sustainability.

“The contributory pension scheme is a good system, but the government must make adjustments to improve what pensioners are earning. The government should re-evaluate the scheme and identify areas for improvement.

“If the government wants the contributory pension to work out, any increase in minimum wage and minimum pension should also be reflected in the contributory pension so that all pensioners, either those under the old pension scheme or those under the contributory pension scheme, can earn a reasonable amount,” he added. (Saturday PUNCH)