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Why We Reduced 50% Lump Sum Payable To Retirees – PenCom

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7 years ago

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The National Pension Commission (PenCom) says the 50 per cent lump sum payable to retirees as gratuity on retirement from their Retired Saving Account (RSA) was reduced to enable retirees to earn at least 50 per cent of their last monthly salary as pension.
The spokesperson for PenCom, Mr Peter Aghahowa, made the clarification at the ongoing Pre-retirement Workshop for 2019 retirees at the University of Lagos.
The Tide source reports that more than 1,500 public servants from the ministries, departments and agencies including employees from the academia and the Nigerian Railway Corporation (NRC) attended the workshop.
Aghahowa said the move became necessary following complaints by retirees that their monthly pension was too meagre to meet their obligations.
“Initially, retirees were entitled to 50 per cent of their RSA as lump sum (gratuity) after retirement but because of complaints by retirees, PenCom reviewed the template to enable the retiree get 50 per cent of his last salary on retirement as his monthly pension.
“The monthly 50 per cent pension is calculated and deducted from the RSA and the balance is what is paid as gratuity to a retiree.
“It is important to understand that lump sum as gratuity means low pension while big monthly pension means low gratuity,” he explained.
Aghahowa said the percentage of the balance paid as gratuity could vary depending on the amount left after the retiree’s monthly pension had been taken care of.
According to him, the 50 per cent lump sum was reviewed by the commission in May this year through a revised template to Pension Fund Administrators (PFAs) to ensure that the retiree gets 50 per cent of his last salary on retirement for some years.
On deductions from a retiree’s contribution, Aghahowa said PenCom could not “willfully deduct” from a retiree’s RSA balance, except on exceptional cases.
He said a retiree’s RSA balance could be deducted if the retiree’s contribution was wrongly computed.
“This denotes that the retiree was overpaid based on the initial document he submitted but on verification of his document, some irregularities were discovered.”
To ensure sanity in the system, Aghahowa said the commission would continue to monitor the PFAs and the Pension Fund Custodians (PFCs) effectively.
He added: “The commission inspects the PFAs and PFCs two times in a year and receives their investment returns daily or weekly.
“The commission could sanction or withdraw the operating licence of any PFA or PFC that errs.”

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Kenyan Runners Dominate Berlin Marathons

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2 days ago

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September 22, 2025

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Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.

Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.

The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.

Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.

“I did my best and I am happy for this performance,” said Sawe.

“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”

Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.

In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.

Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.

Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.

 

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NIS Ends Decentralised Passport Production After 62 Years

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2 days ago

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September 22, 2025

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The Nigeria Immigration Service (NIS) has officially ended passport production at multiple centres, transitioning to a single, centralised system for the first time in 62 years.
Minister of Interior, Dr Olubunmi Tunji-Ojo, made the disclosure during an inspection of the Nigeria’s new Centralised Passport Personalisation Centre at the NIS Headquarters in Abuja, last Thursday.
He stated that since the establishment of NIS in 1963, Nigeria had never operated a central passport production centre, until now, marking a major reform milestone.
“The project is 100 per cent ready. Nigeria can now be more productive and efficient in delivering passport services,” Tunji-Ojo said.
He explained that old machines could only produce 250 to 300 passports daily, but the new system had a capacity of 4,500 to 5,000 passports every day.
“With this, NIS can now meet daily demands within just four to five hours of operation,” he added, describing it as a game-changer for passport processing in Nigeria.
“We promised two-week delivery, and we’re now pushing for one week.
“Automation and optimisation are crucial for keeping this promise to Nigerians,” the minister said.
He noted that centralisation, in line with global standards, would improve uniformity and enhance the overall integrity of Nigerian travel documents worldwide.
Tunji-Ojo described the development as a step toward bringing services closer to Nigerians while driving a culture of efficiency and total passport system reform.
According to him, the centralised production system aligns with President Bola Tinubu’s reform agenda, boosting NIS capacity and changing the narrative for improved service delivery.
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FG To Roll Out Digital Public Infrastructure, Data Exchange, Next Year 

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2 days ago

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September 22, 2025

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The National Information Technology Development Agency (NITDA) has announced plans to roll out Digital Public Infrastructure (DPI) and the Nigerian Data Exchange (NGDX) platforms across key sectors of the economy, starting in early 2026.
Director of E-Government and Digital Economy at NITDA, Dr. Salisu Kaka, made the disclosure in Abuja during a stakeholder review session of the DPI and NGDX drafts at the Digital Public Infrastructure Live Event.
The forum, themed “Advancing Nigeria’s Digital Public Infrastructure through Standards, Data Exchange and e-Government Transformation,” brought together regulators, state governments, and private sector stakeholders to harmonise inputs for building inclusive, secure, and interoperable systems for governance and service delivery.
According to Kaka, Nigeria already has several foundational elements in place, including national identity systems and digital payment platforms.
What remains is the establishment of the data exchange framework, which he said would be finalised by the end of 2025.
“Before the end of this year and by next year we will be fully ready with the foundational element, and we start dropping the use cases across sectors,” Kaka explained.
He stressed that the federal government recognises the autonomy of states urging them to align with national standards.
“If the states can model and reflect what happens at the national level, then we can have a 360-degree view of the whole data exchange across the country and drive all-of-government processes,” he added.
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