The National Pension Commission (PenCom) and the National Salaries, Incomes and Wages Commission (NSIWC) have intervened in the pension dispute between the Nigerian Airspace Management Agency (NAMA) and its retirees, paving the way for the resolution of lingering disagreements over outstanding pension adjustments.
The intervention followed a joint meeting between NAMA management and representatives of the retirees held over the weekend at the agency’s headquarters in Abuja, where all parties agreed to seek regulatory clarification on contentious pension issues before further implementation.
The dispute centres on harmonised pension benefits and adjustments covering the 2007, 2010, 2019 and 2024 review periods, including the controversial ₦32,000 monthly consequential adjustment being demanded by retirees.
The meeting came amid rising tension following claims by some retirees that more than 1,000 former NAMA employees had appealed to the Federal Government over alleged non-payment of approved pension increases.
However, documents made available at the meeting showed that only 54 pension-related cases remain outstanding, with the agency assuring that efforts are underway to settle them as quickly as possible.
As part of efforts to address the impasse, NAMA’s Managing Director, Farouk Umar, commissioned a comprehensive actuarial assessment to determine the financial implications and individual entitlements relating to the various pension review periods.
The actuarial report has since been completed, while the agency has commenced the administrative processes required for implementation.
By referring the matter to PenCom and the National Salaries, Incomes and Wages Commission, the stakeholders agreed that the regulatory agencies would provide definitive technical, legal and policy interpretations on the disputed pension components to ensure full compliance with the Pension Reform Act and other extant regulations.
NAMA also clarified that accrued pension rights for employees who migrated from the old Defined Benefit Scheme to the Contributory Pension Scheme (CPS) in June 2004 had been fully settled and transferred into their respective Retirement Savings Accounts (RSAs).
According to the agency, retirees who exited service after January 1, 2007, under the Contributory Pension Scheme have already had their pension contributions paid into their Pension Fund Administrators (PFAs), effectively discharging NAMA of further pension liabilities under the scheme.
Speaking after the meeting, NAMA’s General Manager, Industrial Relations, Dr. Solomon Ohiomah, described the engagement as a “tie-breaker” that brought together management, retirees and regulators to address grey areas fueling the dispute.
“Everyone needs everyone as far as this issue is concerned. We appreciate the management, particularly the Managing Director, for having the patience to bring everybody to the table and also invite the regulatory bodies to provide clarification where there are grey areas”, he said.
According to Ohiomah, representatives of PenCom and the Wages Commission explained that retirees under the Contributory Pension Scheme who retired after July 1, 2007, are not entitled to additional pension increases from NAMA because both employer and employee contributions had already been transferred to their Pension Fund Administrators as opening balances.
He further stated that the Wages Commission clarified that NAMA is not automatically required to implement across-the-board percentage pension increases announced by the Federal Government because the agency does not operate under the Harmonised Public Service Salary Structure.
“NAMA is a self-funded agency financed through its Internally Generated Revenue (IGR). Salary and pension adjustments are not automatic. Whenever salary reviews become necessary, the agency must approach the National Salaries, Incomes and Wages Commission, which advises on the appropriate percentage based on the agency’s revenue profile and other financial obligations”, Ohiomah explained.
He added that the collaborative engagement with PenCom and the Wages Commission has established a unified compliance framework that is expected to guide future pension adjustments in accordance with existing laws.
The Managing Director, Farouk Umar, reaffirmed NAMA’s commitment to the welfare of its retirees, acknowledging their invaluable contributions to maintaining the safety of Nigeria’s airspace over the years.
He, however, stressed that while the agency remains committed to addressing legitimate concerns, all actions must strictly comply with civil service regulations, pension laws and government guidelines.
The intervention by PenCom and the Wages Commission is expected to ease tensions and provide a clear roadmap for resolving the outstanding pension issues through regulatory guidance and legal compliance.