The House of Representatives on Thursday unveiled plans to investigate the operational activities of the Nigerian National Petroleum Corporation (NNPC) Pension Fund Limited, with a view to developing a comprehensive framework to improve pension administration within the corporation.

The proposed investigation, to be conducted by the House Committee on Pensions, followed the adoption of a motion on the need to review the operational activities of the NNPC Pension Fund Limited, sponsored by Hon. Muhammad Shehu.

According to the resolution, the House mandated the Committee on Pensions to recommend sanctions where evidence of negligence, fraud, or misappropriation is established, and to report back within four weeks for further legislative action.

In his lead debate, Hon. Shehu expressed grave concern over the “grievances of retirees and contributors under the NNPC Pension Fund Limited, and the inappropriate operations, injustice, financial mismanagement, non-payment of entitlements, and gross negligence perpetrated by its management.”

“The House is aware that the NNPC Pension Fund Limited originated as a Trust Fund in 1983 to manage NNPC pension assets for the benefit of NNPC and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) retirees. Following several reforms, it became the Incorporated Trustees of the NNPC Pension Fund in 1986 and later transformed into NNPC Pension Fund Limited (NPFL) after the enactment of the Pension Reform Act (PRA) 2014.

“The House is concerned that the objectives of the Pension Reform Act 2014 are to establish a uniform set of rules, regulations, and standards for the administration and payment of retirement benefits across the Public Service of the Federation, and that Retirement Savings Accounts (RSAs) remain the only financial lifeline available to retirees upon retirement.

“The House is also concerned that most NNPC retirees are unable to access their retirement funds despite fulfilling all statutory requirements under the Contributory Pension Scheme, causing widespread hardship, inequality, and disillusionment. The management of NNPC Pension Fund Limited has consistently failed to comply with court orders directing the payment of harmonised pensions to retirees, leaving elderly pensioners no option but to stage protests.

“The House is worried that credible reports and stakeholder submissions reveal that NNPC Pension Fund Limited violated the provisions of Section 50(1)(a) of the Pension Reform Act 2014, as well as Clause (b) of its approval conditions, which mandate that the scheme must be fully funded at all times and that any shortfall must be made up within 90 days.

“The House is cognisant of allegations that the NNPC has failed to transfer all pension fund assets to the designated custodian or provide a statutory undertaking to the National Pension Commission (PenCom) since the scheme’s approval in July 2006.

“The House is aware that inappropriate financial management, lack of transparency, and disregard for regulatory standards have eroded confidence in the integrity of the pension system within the NNPC.

“The House is worried that many retirees, after decades of dedicated service to the nation, are battling health and financial difficulties due to the inaction and negligence of those entrusted with their welfare.

“The House is convinced that the current framework of the NNPC Pension Fund Limited is inconsistent with international best practices, and that there is an urgent need for the Federal Government to adopt an internationally standardised pension fund structure and framework to ensure sustainable investment, transparency, and accountability in pension management,” he added.

To this end, the House mandated the management of the Pension Commission to review the operational activities of the NNPC Pension Fund Limited with a view to addressing issues surrounding delayed and non-payment of pensions to NNPC retirees.

The House also urged NNPC Pension Fund Limited to, within three months, commence payment of all accumulated pensions and arrears due to retirees of the corporation.

The Committee was further mandated to recommend the establishment of a dedicated pension reserve fund specifically for accrued rights payments, and to scrutinise the financial records, investment portfolios, and asset management practices of NNPC Pension Fund Limited.

Consequently, the House directed the joint Committees on Pensions and Legislative Compliance to ensure full compliance. (Nigerian Tribune)