Reps Call CBN Governor to Account over Unpaid Pension Arrears

On Tuesday, November 3, 2026, the House of Representatives moved to summon Central Bank of Nigeria (CBN) Governor Olayemi Cardoso over the lingering issue of CBN pension arrears. The motion, titled “Need for Immediate Settlement of Pension Obligations to Retired CBN Staff,” was adopted after a heated plenary debate, signalling a fresh push by lawmakers to protect the welfare of former central bank employees.

Why the focus on CBN pension arrears now?

The controversy stems from a series of unpaid pension benefits that have accumulated over the past few years. Retired staff claim they have not received statutory payouts dating back to 2022, despite the CBN’s public commitments to clear all outstanding obligations. For many retirees, the arrears represent a critical source of income, especially as the cost of living continues to rise across Nigeria and the wider West African region.

Lawmakers argue that the failure to honour pension agreements undermines confidence in the nation’s financial institutions. In a statement released after the motion’s adoption, Representative Chinyere Nwankwo (APC‑Abia) said, “When the apex bank cannot meet its own pension obligations, how can ordinary Nigerians trust the system?” The sentiment resonated with other members, who urged the CBN to present a clear repayment schedule within the next 30 days.

Legal backdrop and the CBN’s obligations

Under the Pension Reform Act of 2020, all public sector employers, including the CBN, are required to remit pension contributions to the Pension Fund Administrators (PFAs) and settle any arrears within a stipulated period. The Act also empowers the National Pension Commission (PenCom) to enforce compliance, including imposing penalties for delayed payments.

PenCom’s 2025 annual report highlighted that the public sector still accounts for roughly 12% of total pension arrears in Nigeria, with the CBN featuring prominently among the laggards. While the central bank has previously cited cash‑flow constraints and the need to prioritise monetary policy operations, critics argue that the bank’s balance sheet is robust enough to meet its fiduciary duties.

Political dynamics shaping the summons

The decision to summon Governor Cardoso reflects broader political currents in Abuja. The House, dominated by a coalition of the All Progressives Congress (APC) and the Peoples Democratic Party (PDP), has been keen to showcase its oversight role ahead of the 2027 general elections. By spotlighting a high‑profile institution like the CBN, legislators hope to demonstrate accountability and responsiveness to everyday Nigerians.

Moreover, the issue has transcended partisan lines. Representatives from the Labour Party (LP) and the New Nigeria Peoples Party (NNPP) also signed the motion, underscoring a rare consensus on the need to protect pensioners. This cross‑party support may pressure the CBN to act swiftly, lest it face a credibility crisis that could ripple through the banking sector.

Potential impact on the banking sector and investors

Financial analysts warn that prolonged pension arrears could erode confidence among both domestic and foreign investors. The CBN’s reputation as a stable regulator is a cornerstone of Nigeria’s attractiveness to fintech startups, multinational banks, and sovereign wealth funds. Any perception of mismanagement may trigger capital outflows or higher risk premiums on Nigerian bonds.

In a recent briefing, a senior analyst at a Lagos‑based investment firm noted, “The CBN’s credibility is intertwined with its internal governance. Unsettled pension dues send a negative signal to the market, especially when the bank is championing reforms like the digital naira and green financing.” The analyst added that prompt resolution could restore faith and support ongoing reforms.

What retirees can expect moving forward

If Governor Cardoso complies with the summons, the House is expected to set up a joint committee with PenCom to audit the pension ledger and draft a repayment roadmap. Retirees have been urged to submit any outstanding claims to the committee within a two‑week window, ensuring that all eligible beneficiaries are accounted for.

Should the CBN fail to present a satisfactory plan, lawmakers have indicated they may pursue further legislative action, including the possible amendment of the Pension Reform Act to impose stricter penalties on defaulters. Such steps could set a precedent for other public institutions grappling with similar arrears.

Regional perspective: pension challenges across Africa

While the spotlight is on Nigeria, pension arrears are not unique to the country. Ghana’s Public Services Pension Scheme, South Africa’s Government Employees Pension Fund, and Kenya’s Civil Service Pension Scheme have all reported delays in recent years. The common thread is the tension between fiscal pressures and the moral imperative to protect retirees.

Regional bodies such as the African Development Bank (AfDB) have advocated for stronger pension governance, encouraging member states to adopt transparent reporting and enforceable timelines. Nigeria’s handling of the CBN pension issue could therefore influence broader continental discussions on social security reforms.

Practical steps for retirees: how to verify and claim

Retirees who suspect they are owed pension payments can follow a simple three‑step process:

1. Obtain a statement of contributions: Request a detailed contribution record from the PFA that administered the CBN staff pension (e.g., Leadway PFA). The statement should list employer and employee contributions by month.
2. Cross‑check with PenCom’s online portal: PenCom maintains a secure portal where beneficiaries can view accrued benefits and any identified arrears. Upload the contribution statement to compare figures.
3. Submit a formal claim: If discrepancies remain, file a claim through the PFA’s grievance channel, attaching the contribution statement and portal screenshot. Keep a copy of the acknowledgment for future reference.

These steps empower retirees to build a documented case before the parliamentary committee convenes.

Illustrative example of pension calculation

Example: A CBN employee retired in March 2023 with a final salary of NGN 350,000. Under the Pension Reform Act, the pension is calculated as 2% of final salary for each year of service, plus accrued employer contributions. Assuming 25 years of service, the basic pension would be 0.02 × 350,000 × 25 = NGN 175,000 per month. If the CBN missed employer contributions for 12 months, the arrears would equal 12 × (2% × 350,000) = NGN 84,000. The example demonstrates how even a short lapse can generate sizable unpaid amounts for retirees.

FAQ

• What is the legal basis for demanding the CBN settle pension arrears? The Pension Reform Act 2020 mandates timely payment of pension contributions and settlement of any arrears by public sector employers, overseen by PenCom.
• How long have the arrears been accumulating? Retirees allege that unpaid benefits date back to 2022, with the bulk of the outstanding amounts accruing over the past three years.
• What could happen if the CBN does not comply with the House’s summons? Lawmakers may pursue further legislative measures, including stricter penalties or amendments to pension law, to enforce compliance.
• Can retirees claim interest on delayed payments? PenCom’s guidelines allow for interest on arrears where the delay exceeds 90 days, subject to verification of the outstanding amount.
• Will the parliamentary committee’s findings be public? The House has pledged to publish a summary report after the audit, to ensure transparency and allow civil society to monitor implementation.

For the full text of the motion and further updates, see the original report on Daily Post Nigeria.

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