Coins in a glass jar. Pension
The Director of the Centre for Pension Rights Advocacy, Mr. Ivo Takor, has endorsed proposals to reintroduce gratuity payments under Nigeria’s Contributory Pension Scheme (CPS), urging that the initiative be anchored in law and guided by principles of inclusivity and equity.
Speaking to the News Agency of Nigeria (NAN), Takor welcomed the partnership between the National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF) to explore gratuity reinstatement for civil servants.
“For this initiative to deliver lasting and equitable outcomes, it must move beyond policy statements,” Takor said.
He recommended that the Pension Reform Act 2014 be amended to incorporate gratuity as a statutory benefit, cautioning against reliance on administrative directives that could be easily reversed.
Takor also advocated using the broader term “public servants” rather than “civil servants,” to ensure inclusivity across Ministries, Departments, Agencies (MDAs), and various sectors.
Beyond federal civil servants, he argued that state workers and private sector employees should also benefit. “In many states, workers are denied gratuity while governors and deputies enjoy lifetime benefits after eight years in office,” he said.
Highlighting private sector disparities, Takor decried how top executives receive generous severance packages while junior staff are often left without gratuity benefits.
He stressed that the 2004 pension reforms were never intended to strip workers of existing entitlements but to enhance retirement security.
“Reinstating gratuity is not just policy correction—it is a moral obligation that reaffirms the dignity of labour,” he added.
Also speaking, pension coach Dr. Babatunde Raimi welcomed the initiative, describing gratuity as a financial cushion and an expression of appreciation for years of service.
He observed that many retirees experience financial anxiety and hardship immediately after retirement due to the absence of gratuity payments, despite the CPS’s achievements in transparency and sustainability.
“This is good news for Nigeria’s civil service. If some public institutions and states still pay gratuity alongside pensions, this should be extended nationwide to promote equity, fairness, and dignity in retirement,” Raimi said.
