Kaduna, Kebbi, Akwa Ibom to domesticate Pension Act
The governors of Kaduna, Kebbi and Akwa Ibom states have revealed they have commenced the process of domesticating the Pension Reform Act 2014 in their respective states.
When this occurs, these states will adopt the Contributory Pension Scheme as defined in the PRA 2014.
The governors disclosed this in Abuja at the just concluded World Pension Summit (WPS). Speaking during the panel discussion, the Governor of Kaduna State, Mallam Nasiru El-Rufai said already the state executive council has approved the draft pension legislation which was sent to the State Assembly on Wednesday.
According to him, the state is undergoing critical reforms in the pension industry that will see the scheme fully funded in about eight years from now.
“When we were sworn in by May this year, we inherited a pension and gratuity deficit of about N14.3 billion unfunded. We are still grappling on how to resolve that. But we also inherited a partly funded defined contributory scheme that has some N4 billion contribution. What we have done is to draft a new pension reform bill in the state that has been approved by the state executive council. It has been sent to the state Assembly for consideration to be consistent with the Pension Reform Act of 2014”, he said.
According to him, the state is also strengthening its commitment to the defined benefit scheme to take care of those that will continue on the pay as you go system.
“On the whole, in about seven or eight years, our pensions will be fully funded; we would have covered the entire deficit. We are slightly luckier than other states; we didn’t inherit salary arrears and other issues that other states are facing,’’ he noted
He also said the state is partnering with the federal government to revive dead textile industries in the state and also investing heavily in agriculture and its valuechains.
Similarly, the Kebbi state Governor, Alhaji Atiku Bagudu, said the state is “also at the verge of passing its new pension law.”
According to him, his government is also working hard to woo investments into the state, particularly in rice, sugarcane and cotton production.