Retired police officers under the Contributory Pension Scheme (CPS) have challenged claims by the Pension Fund Operators Association of Nigeria (PenOp) that the Federal Government would require an additional N7 trillion annually if the Nigeria Police Force exits the scheme.

In a statement issued on January 21, 2026, and signed by the National Coordinator, SP Christopher Effiong (rtd), alongside other retired senior officers, the group described the claim attributed to PenOp’s Chief Executive Officer, Mr. Oguche Aguda, as “baseless and misleading.”

PenOp had reportedly warned, in an interview published by Daily Trust on January 15, 2026, that exiting the CPS could impose a huge fiscal burden on the Federal Government.

However, the retirees challenged the association to publicly substantiate the figure with verifiable macroeconomic data, insisting that police retirement benefits should not be portrayed as a threat to Nigeria’s fiscal stability.

The group argued that fiscal and monetary policies remain the statutory responsibility of the Ministry of Finance and the Central Bank of Nigeria, and questioned what it described as the growing influence of pension fund operators in shaping national pension discourse.

According to them, the CPS is incompatible with the realities of policing, given the risks associated with the profession, including exposure to violence, injury and psychological trauma.

They further contended that presenting the matter purely as a N7 trillion fiscal burden ignores the broader cost of insecurity to the nation.

“Security is an investment, not an expense,” the retirees said, adding that poor police welfare contributes to low morale, corruption and inefficiency, with far-reaching economic consequences.

The retired officers dismissed claims that there is no consensus within the police on exiting the CPS, maintaining that both serving and retired personnel support a total withdrawal from the scheme.

They described the continued inclusion of the police in the CPS as discriminatory, noting that the military, intelligence agencies, National Assembly workers and some states operate pension systems outside the CPS framework.

They also cited international examples, including Chile, where police institutions are reportedly excluded from contributory pension arrangements, arguing that Nigeria should adopt a similar model.

Raising concerns about pension fund management, the retirees referred to a presentation allegedly delivered by PenOp’s CEO at a pension seminar in Lagos in January 2024, which highlighted investments exceeding N308 billion in corporate debt instruments.

They claimed that returns on these investments have not been adequately reflected in the pensions of retired police officers.

The group reiterated its demand for a complete exit of the Nigeria Police Force from the CPS and the establishment of a Police Pension Board to manage gratuities and pensions.

They warned that retaining the police in the CPS while exempting other security agencies is inconsistent with policy, urging the Federal Government to prioritise equity, dignity and national security in pension reforms.

The statement was also signed by ACP Bright Kakada (rtd), DSP Elder Ofem O. Mbang (rtd), ASP El-Nathan Jareh, and 21 other retired officers. (The Guardian)