The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised concerns over the declining value of pensions for retirees in the oil and gas sector, calling the situation “worrisome and unsustainable.” Speaking in Abuja during a stakeholders’ engagement on closed pension fund administrators (CPFAs), PENGASSAN President Festus Osifo highlighted that many retirees are struggling as their benefits have remained stagnant for years.
Osifo noted that retirees who left service decades ago, even as far back as 1990, still receive the same pension amounts today, despite soaring inflation and naira depreciation. “Many of our retirees are going through hardship because their pensions have remained static for years. What they take home monthly has lost its value due to inflation and the fall of the naira,” he said, emphasizing the urgent need for reforms.
The union criticized most CPFAs for failing to regularly review pension benefits, with about 90% leaving retirees dependent on management’s goodwill for adjustments. PENGASSAN called on the National Pension Commission (PenCom) and leading oil companies, including Chevron, TotalEnergies, ExxonMobil, and NNPC, to reassess actuarial assumptions and ensure fair upward adjustments to protect retirees’ livelihoods.
While commending PenCom for its professionalism, Osifo urged the regulator to maintain transparency and strengthen oversight of CPFAs. Representatives of PenCom reassured stakeholders that new supervisory frameworks and investment guideline reviews are underway to protect retirees’ purchasing power, improve governance, and maintain confidence in Nigeria’s pension system.
Highlighting innovation in the sector, TotalEnergies CPFA’s Managing Director, Benjamin Okeke-Agedi, represented by CFO Wale Olasoji, emphasized the importance of digital platforms, artificial intelligence, and global diversification in CPFAs’ investment strategies. He called for collaboration among employers, regulators, and unions to uphold strong governance, integrate environmental, social, and governance (ESG) standards, and ensure pensions remain sustainable for future retirees.
source: The Guardian