The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised the alarm over the rapidly collapsing value of pensions received by retirees in the oil and gas sector, describing the situation as “worrisome, unjust, and unsustainable.”

Speaking in Abuja at a stakeholders’ engagement on the state of Closed Pension Fund Administrators (CPFAs) in the industry, PENGASSAN President, Comrade Festus Osifo, painted a grim picture of the plight facing many retired oil workers, lamenting that their years of labour and loyalty have been reduced to near worthlessness by inflation and currency devaluation.

“We have observed with deep concern that many of our retirees are going through hardship because their pensions have remained static for years,” Osifo said, noting that the purchasing power of pensioners has been eroded to the point of indignity.

“Some retired as far back as 1990 or 2010, but what they take home monthly today has lost its value due to inflation and the fall of the naira,” he added, stressing that the situation calls for urgent redress.

The PENGASSAN leader expressed dismay that while a few CPFAs had made efforts to review pension payments periodically, the majority had abandoned retirees’ welfare to the mercy of management discretion.

“In about 90 per cent of the closed pension schemes, the benefits do not grow. The retirees depend solely on the goodwill of management for any form of increment,” he stated.

Osifo therefore urged the National Pension Commission (PenCom) and oil majors such as Chevron, TotalEnergies, ExxonMobil, and the Nigerian National Petroleum Company (NNPC) Limited to initiate a comprehensive review of actuarial assumptions and make fair adjustments that reflect present economic realities.

“We are going to engage the management of these organisations and advocate for reforms that will restore dignity to our retirees,” Osifo declared passionately.

“Today’s pensioners were once union veterans who fought for workers’ rights. It is now our duty to fight for their comfort.”

Commending PenCom for maintaining professionalism in regulating the sector, he appealed to the commission to deepen its oversight and sustain its integrity.

“We still believe PenCom remains one of the most credible regulatory institutions in the country. We urge them to stay true to that reputation and protect the interests of pensioners,” Osifo said.

Representing the Director-General of PenCom, Mrs. Omolola Oloworara, the Head of Investment Supervision Department, Mr. Abdulqadir Dalhatu, reassured stakeholders that the commission was fully committed to safeguarding the integrity and sustainability of CPFAs.

He revealed that PenCom had already introduced new supervisory mechanisms and compliance frameworks to reinforce governance and ensure that contributors’ funds are well protected.

“Our goal is to maintain public confidence in the pension system while driving innovation and sustainability,” Dalhatu affirmed.

“We are continuously reviewing the investment guidelines to align with global best practices and ensure the long-term safety of pension assets.”

Acknowledging the economic challenges faced by retirees, Dalhatu hinted at ongoing efforts by PenCom to address the impact of inflation and exchange rate fluctuations.

“We recognise the challenges caused by inflation and exchange rate fluctuations, and PenCom is exploring measures that could ensure that retirees’ purchasing power is better protected,” he said, adding that the commission remained open to collaboration with organised labour, pension operators, and employers.

Delivering the keynote address, the Managing Director of TotalEnergies CPFA, Mr. Benjamin Okeke-Agedi, represented by the company’s Chief Finance Officer, Mr. Wale Olasoji, emphasised that CPFAs have a distinct edge in investment flexibility and diversification; a strength that, if properly harnessed, could protect pension funds from market shocks.

“CPFAs have the advantage of conditional approval of investments under the fund provisions, which allows for global partnerships and diversification,” Olasoji explained. “This provides a hedge against policy shocks and enhances long-term sustainability.”

He stressed the need for CPFAs to adopt technology, innovation, and sustainable investment strategies to remain relevant in a rapidly evolving financial landscape. “Adopting digital platforms for member services, data analytics, and real-time reporting will enhance efficiency, reduce costs, and improve transparency,” he said, adding that “artificial intelligence can support portfolio optimisation and predictive risk assessment.”

Olasoji further urged CPFAs to embrace Environmental, Social, and Governance (ESG) principles as guiding tools for responsible and impactful investing. “For CPFAs to thrive, they must integrate ESG reporting and invest in impactful asset classes such as infrastructure and green housing to support Nigeria’s energy transition goals,” he noted.

He called on all stakeholders—employers, regulators, and unions to uphold strong governance and transparency across the pension ecosystem. “The sustainability of CPFAs depends on collective responsibility, sound regulation, and continued innovation,” Olasoji added.

Reaffirming the union’s unflinching commitment to the welfare of all oil workers, both active and retired, Osifo closed with a reminder of PENGASSAN’s founding creed: “Injury to one,” he said, “is truly injury to all.” (Nigerian Tribune)