Nigerian workers numbering 8,130 who lost their jobs in the fourth quarter of 2024 have fallen back on their pension savings as lifeline.
Of this number, 7,494 were from the private sector, while 636 were from the public sector, comprising both Federal and State employees.
During the fourth quarter, a total of 8,130 RSA holders under the age of 50 were approved to access 25 percent of their RSA balances due to temporary loss of employment, the National Pension Commission said.
According to the Commission, the sum of N22.85 billion was approved for disbursement to these Retirement Saving Account (RSA) holders.
The Pension Reform Act 2014 provides access to pension savings after loss of job.
“Where an employee voluntarily retires, disengages or is disengaged from employment as provided for under Section 16 (2) and (5) of this Act, the employee may with approval of the commission withdraw an amount of money not exceeding 25 percent of the total amount credited to his retirement savings account, provided that such withdrawal shall only be made after four months of such retirement or cessation of employment and the employee does not secure another employment.”
The also says where an employee has accessed the amount standing in his retirement savings account pursuant to subsection (2) of this section; such employee shall subsequently access the balance in the retirement savings account only at the time of retirement.
Agudah Oguche, chief executive officer of Pension Fund Operators Association, while commenting on the disbursement of death benefits to dependants of bereaved workers over a five-year period, said the Contributory Pension Scheme (CPS) has successfully reflected the commitment of both the increasing number of beneficiaries and providing financial support to those who are entitled to it during critical times.
He said the CPS, introduced by the Pension Reform Act 2004 and revised in 2014, recognises the importance of the contributors, the contributions, and what happens them while in employment.
“This is both when there is life and in death. With this realisation that there is life and there is also death, the operators ensure that people’s wishes are supported as far as is within the provisions of the law.”
Julius Obah, who worked in an advertising firm, lost his job in December 2020 when many companies were retrenching workers following the impact of COVID-19 and increasing uncertainties in the economy.
Having approached his pension fund administrator (PFA) four months after he stayed without a job to access part of his pension savings, he was asked to complete the request form and after a month, he was paid.
“I would have liked to take more but my PFA insisted I cannot take more than 25 percent since I was not yet retired, but for me it was a good relief,” he said.
According to Obah, the advantage he had was that his employer had been regular in remitting his pensions.
“So, it was easy for my PFA to work out my 25 percent because it was meant to be both my accrued rights and what had been remitted to date,” he said.
Euphemia Ameh, who recently turned 50 years and has begun the process of accessing the balance in her RSA, said she collected 25 percent of the balance of the money when she lost her job four years ago.
“The money was quite helpful for me then, because I used it to start a petty trade, which I am still managing till today,” she said.
