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Pension harmonisation: Court orders NNPC to pay retirees within 90 days

Justice Elizabeth Oji  of the National Industrial Court, Lagos, has ordered immediate payment of harmonised pensions to affected retirees of the Nigerian National Petroleum Corporation (NNPC) within 90 days.

Justice Oji ordered the two defendants in the suit, NNPC and NNPC Pension Fund Limited to pay the harmonized pension to  the affected retirees   from January 1, 1997 to date, in accordance with the Provision of Section 173  of the 1999 Constitution of the Federal Republic of Nigeria (as Amended).  The claimants had through their counsel, Mr. Adeleke Agbola, approached the court to seek an order of mandamus  to  compel  the defendants to pay them forthwith all accrued pensions calculated with  effect from January 1, 1997 on emoluments currently  earned  by  their serving  counterparts as prescribed  under  the Federal  Government  Policy on Harmonisation of Pensions.

Listed as claimants in the suit were Dr. Ikechukwu Nwobodo, Mr. J. C. M. Okaro,   Chief J. Orife, Mr. O. Makinde, Dr. A. A. Abvobvo, Mr. B. O. Umebolu, Chief F. ESISI, Alhaji A. A. Lawal, Mr E. O. Tetede, Chief Mrs. Nkangha, Mr. Tunde Odunlami, Mr Arigbabu, O. M. Alabi and Mr. I. A. O. Izuka for themselves and on behalf of concerned retired pensioners of NNPC.

The affected retirees were mostly pioneer staffs of NNPC who retired before 2003.

Speaking at a press briefing yesterday, the chairman of the Retired Management Staff Association of NNPC (REMANSON), Chief Samson Azebeokhai, stated that the problem started when NNPC improved the condition of service for staff including retirees.

According to him, the improvement substantially increased the pension emoluments of retirees from 2003 to reflect the cost of living. However, NNPC did not include those who retired before 2003 which made the affected retirees to institute the suit in 2011.

Delivering judgment in the suit, the trial judge, in his analysis of the cases as presented by parties, held   that   by   the   extant provision   of   Section   318   of   the   1999 Constitution of the Federal Republic of Nigeria (as amended), the claimants are public servants and hence, the defendants must ensure the periodic harmonization of   the   pension  of   its   retirees   as   provided for under  Section   173   of   the Constitution. The court also rejected the defendants’ argument  that   the   payment   of   pension should be based on affordability and sustainability and held that payment must be based on provisions of the Constitution and government policy as expressly provided   for  in   Section   173   of   the   Constitution.

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