NAMA, Retirees Reach Common Ground as PenCom, Wages Commission Move to Resolve Pension Dispute
The lingering disagreement between the Nigerian Airspace Management Agency (NAMA) and its retired employees over unpaid pension adjustments has taken a significant step towards resolution, following the intervention of the National Pension Commission (PenCom) and the National Salaries, Incomes and Wages Commission (NSIWC).
The breakthrough was achieved after a joint meeting involving NAMA management, representatives of the retirees and officials of both regulatory bodies at the agency’s headquarters in Abuja over the weekend.
The stakeholders agreed to rely on PenCom and the NSIWC to provide definitive interpretations on the legal and regulatory issues surrounding the disputed pension adjustments.
The dispute has centred on the implementation of harmonised pension reviews for 2007, 2010, 2019 and 2024, including the N32,000 monthly consequential adjustment approved by the Federal Government.
The matter gained national attention after reports surfaced that more than 1,000 retired NAMA workers had petitioned the Federal Government, alleging that the agency had failed to pay approved pension increments dating back several years.
The retirees argued that their pensions should reflect the various salary reviews approved by the Federal Government for public servants, citing Section 173(3) of the 1999 Constitution, which provides for periodic pension increases whenever salaries of serving officers are reviewed.
However, records presented during the meeting indicated that the number of unresolved pension cases is considerably lower than previously reported, with only 54 cases still pending.
NAMA assured the meeting that arrangements are being made to settle the outstanding obligations as soon as administrative processes are concluded.
To establish the precise financial liabilities and eliminate uncertainty over individual entitlements, NAMA Managing Director, Farouk Umar, commissioned an extensive actuarial valuation covering all pension adjustments linked to the review years under dispute.
The actuarial exercise has now been concluded, providing the agency with a detailed assessment of the financial implications and the pension entitlements of affected retirees. NAMA said implementation of the report has already commenced.
The agency also reiterated that all accrued pension rights belonging to staff who moved from the old Defined Benefit Scheme to the Contributory Pension Scheme (CPS) in June 2004 had been fully paid and transferred into the Retirement Savings Accounts (RSAs) of the affected employees.
According to NAMA, the intervention by PenCom and the NSIWC establishes a coordinated framework that will ensure future pension adjustments comply fully with the Pension Reform Act and other extant government regulations.
Addressing journalists after the meeting, NAMA’s General Manager, Industrial Relations, Dr Solomon Ohiomah, described the engagement as a turning point in resolving the disagreement, saying it enabled both parties to openly address contentious issues with the guidance of the relevant regulatory authorities.
He commended the agency’s management for creating an atmosphere of dialogue rather than confrontation and for inviting PenCom and the Wages Commission to provide authoritative clarification on areas where differing interpretations had fuelled the dispute.
Ohiomah disclosed that officials of PenCom clarified that retirees under the Contributory Pension Scheme who retired after July 1, 2007 are not entitled to receive monthly pension payments directly from NAMA because all pension contributions made by both the employer and employees had already been transferred to their respective Pension Fund Administrators (PFAs).
He added that NAMA had fulfilled all statutory obligations by paying retirement benefits to employees who retired after January 1, 2007, after which responsibility for pension administration rests with the PFAs.
He further explained that the National Salaries, Incomes and Wages Commission clarified that government-approved percentage pension increases do not automatically apply to NAMA because the agency is not on the Harmonised Public Service Salary Structure.
According to him, NAMA operates as a self-funded agency financed largely through internally generated revenue, meaning any salary or pension review must first be considered by the Wages Commission in line with the agency’s financial capacity and operational realities before implementation.
Farouk Umar reaffirmed the agency’s commitment to the welfare of its retired workforce, describing them as individuals who devoted decades of service to safeguarding Nigeria’s airspace and supporting the growth of the country’s aviation industry.
He assured retirees that management remains committed to resolving all legitimate pension concerns but emphasised that every adjustment must be implemented in accordance with the Pension Reform Act, civil service regulations and other applicable government policies.
The latest engagement is expected to ease tensions between the agency and its retirees, while providing a clear regulatory pathway for resolving the remaining pension issues through collaboration between NAMA, PenCom and the National Salaries, Incomes and Wages Commission.
