Economy

Imo Jubilates as Governor Ihedioha Offsets Huge Pension Debt

Published

6 years ago

October 18, 2019

Eric

The people of Imo State, especially pensioners, have been jubilant following the fulfillment of the promise made by Imo State Governor, Rt. Hon.Emeka Ihedioha CON to ensuring commencement of payment of pensions to State and local government Pensioners.

The payment of arrears of pensions in the State came barely a week the governor had, at a Stakeholders Meeting on Pensions Matters at Imo Concorde hotel, Owerri, announced that payment will commence today, Thursday, October 17, 2019.

In a broadcast to the people of the State, Governor Ihedioha announced that the State government will be parting with N1, 218,175,387 for both State and Local government pensioners monthly.

He revealed that his administration inherited six years of pension arrears and discovered inexplicable discrepancies in the total number of pensioners in both the State and 27 local government areas.

He said, “I would like to appeal to all our citizens that the challenge of payment of a pensions bills standing over N1.2 billion monthly is very enormous. This calls for sacrifices by all citizens…”

“We are confronted with the necessity to source for the revenue to ensure a good life for our senior citizens”.

This is even as the Chairman of the Nigeria Union of Pensioners, Sir PU Ugochukwu has hailed Governor Ihedioha for keeping to his words to ensure pensioners are paid from today.

“I am overjoyed and that is the mood of my members across the state and local government. The governor has proved that he is a man that can be trusted when he makes a promise. We closely monitored the verification exercise and I can tell you that it was far-reaching and revealing. I expect that the payment will go round since they have commenced payment”, he said.

Governor Ihedioha recalled that on assumption of office, his administration embarked on a wide range of reforms geared towards achieving effective service delivery, ensuring value for money and entrenching transparency in governance, cumulative factors which led to the set up of an investigative committee to look into the process of pensioners in the State which was riddled with intractable problems and corruption.

He said, “One of such frameworks was the Imo State Pension Board and its corresponding pension management system which was afflicted with intractable problems and riddled with corruption. Sadly, we inherited six years of pension arrears and discovered inexplicable discrepancies in the total number of pensioners in both the State and the Twenty-Seven (27) Local Governments. We received complaints on various forms of irregularities in the scheme from various pension beneficiaries and stakeholders”

He recalled the challenges his administration confronted in handling the issue of pensioners in the State after years of neglect.

“When we made to resolve the contending issues, we were confronted with conflicting information from various offices in charge of pension administration. Consequently, we could not ascertain the proper position of monthly pension liabilities in the state” .

Governor Ihedioha said despite the challenges, he was determined to ensure senior citizens in the State enjoy their toil of yester years.

“As you all are aware, it has been my declared commitment to ensure that our senior citizens retire in joyful hope, live in dignity and extended the courtesy they deserve. Accordingly, we set up an investigative committee to carry out a comprehensive audit of the pension administration system in the State. The main objectives of this action was to ascertain the actual number of pensioners in Imo State and to end the corruption and perennial cycle of verifications that have plagued the process over the years.

“The terms of reference of the Committee were, among other things:

a. To determine all outstanding pension liabilities in both the state and local governments;

b. To advise on the need for the establishment of an electronic database and digitization of the pension process in the state, and;

c. To provide the government with guidance on the desirability of transiting to the Contributory Pension Scheme (CPS) which have been established at the federal level as well as various states of the federation”

He said the State Executive Council took a close look at the report which revealed several challenges suffocating the pension system in the State.

“My good people of Imo State, I am pleased to inform you that the Committee has finished their work and on record time too. The State Executive Council has studied the report and the outcome satisfactorily deliberated upon and duly adopted. Their report, undeniably, confirmed our fears.

“Some of the challenges were a dearth of information due to the absence of a reliable database as well as irregular payments arising from flawed data. Most times, the data were hastily cobbled up from a plethora of committees and subsequently, carried conflicting information. As a result, the integrity of the available data was grossly compromised.

“There is also the issue of a failed attempt to establish an electronic database for pensioners through various consultants after so much financial commitment.

“Pursuant to their mandate, the Committee undertook the extraction and analysis of 48,481 records comprising 28,658 from the Office of the Head of Service (OHOS) of the State and 19,823 from the Local Government Pension Board. After it had processed the records, the Committee finally verified 24,431 pensioners. These were, subsequently, consolidated in a central server for the validation phase”

Governor Ihedioha said huge funds were saved for the State after the process of paying pensioners were reviewed and re examined.

“It is very instructive that out of an initial monthly bill of N1, 499,157,895.00 being accrual for 33,541 state and LGA pensioners, presented to the state government as at May 2019, the amount has been trimmed down to N1, 218,175,387 for 24,992 pensioners. This entails a savings of N280, 982,508.00 or 18.7 percent per month. Consequently, a total of 8,549 or 25percent, of ghost pensioners in all were filtered out. This represents the amount of state resources that would have gone into the drains without the necessary due diligence.

“These involved cases of duplication and over payments engendered by wrong parameters, calculation errors or deliberate falsifications. There were instances in which Level 6 officers were earning pensions for Level 16. Unfortunately, while the pensioners received pensions due them as retired Level 6 officers, the balance of the funds could not be accounted for.

“To carry through necessary processes, we have set up machinery for the quick commencement of payments. We are working with the banks to ensure prompt transmission of payments to the various pensioners. It would gladden you to know that the process also includes those who recently retired. Yes, indeed, as the months roll by, more people are hopping unto the retirement train. We are leveraging the Bank Verification Number (BVN) system as well as online real-time payment technology. This is to ensure that beneficiaries are easily authenticated and would get their payments at the click of the button, directly and not through proxies or surrogates”

Governor Ihedioha directed the creation of a Unit in the State Pension Board to capture those who were not part of the exercise.

“I am aware that a few but significant group of pensioners who are out of the state or in the Diaspora have not been captured because they could not be available during the exercise.

“However, I have directed that a Unit be created in the Pensions Board, to resolve these types of cases as well as complaints that may naturally arise during the audit exercise”

Governor Ihedioha noted the benefits of the exercise which led to gainful employment of some youths in the State

“My good people of Imo State, besides the huge financial savings achieved from this exercise, I am excited by the capacity we have built in the sector. Two Hundred and Fifty-Six (256) youths were recruited and trained from the 27 LGAs of the state on the use of bespoke software developed specifically for the exercise. There were also another Eight Hundred (800) adhoc staffs, all of them youths, who were trained in various skills and deployed in the process. The span of competence they have acquired include pension management, data analysis, document digitization and biometrics capture. Others include; digital hardware management and support systems. We look forward to harnessing these youths into other useful departments especially as government prepares to launch its e-governance platform. Some would also be redeployed to the Local Governments to help create an effective technology-driven pension data management system and the civil service biometrics capture exercise”

He also ordered the set up of a central database for pensioners in the State.

“Flowing from the adopted report of the Committee, government has directed the immediate establishment of a credible database of all pensioners. The digital architecture has been made inviolable so that the collated data would not be compromised in the future. Nobody would be able to add figures, nor remove.

Similarly, government is looking into the suggestion for the establishment of a Pension Board to manage the pensions of both the state and local governments. In line with prevailing National and International best practice, government will soon adopt the Contributory Pension Scheme – CPS. Our goal is to establish a seamless administration and management of pensions in Imo State, achieve accurate computation of benefits and build a secure data-bank. We also hope that the payroll structure would be integrated with the government e-payment system.

He appealed to “all our taxpaying adults and businesses to keep faith with our tax and revenue payments. “Taxes to whom taxes are due and revenues to whom revenues are due” are fundamental tenets enjoined by the scriptures. In the same vein, public servants charged with the responsibility of stewardship over public revenue would henceforth face a greater scrutiny”

He said his administration will introduce strict measures by instituting a regime of stricter revenue collection, accounting and monitoring

“To demonstrate our resolve, the present government upon inception adopted the Treasury Single Account (TSA) system to curb revenue leakage. We are also instituting a regime of stricter revenue collection, accounting and monitoring. It is not going to be business as usual. “Indeed, the Labour of our Heroes past, shall never be in vain.”

Governor Ihedioha praised the committee for a job well done despite the enormous challenges

“I would like to, therefore, express our profound gratitude to the members of the Committee and the team of consultants for the great job they have done. I am aware they rummaged through more than 48,000 files which were at various stages of decomposition and sometimes at grave risk to their health. Some of these files had gathered rot and rust more than four decades ago. Very importantly, I was highly impressed by their setting up of mobile teams that travelled round the states; to various nooks and crannies, including hospitals, to conduct verifications for pensioners hampered by various forms of ill-health or disabilities.

“Words would fail me to capture the debt of our gratitude. I urge you all to take pride in the fact that you were part of the great effort to resolve the perennial problems of pension administration in the State.

He described the last eight years in the State as years of the locust

“The last eight years have been the locust years for the people of Imo State. The harm done to state institutions and processes were enormous. However, as a people endowed with abundant human and natural resources, we are equal to the task of the restoration project. Our mission is to re-establish the apparatus of good governance rebuild our infrastructure and restore trust in government. This calls for our collective hard work, prayers and partnership.

“Thank God we have begun and the coast is getting ever brighter for Imo State” he concluded

Economy

Tinubu Seeks World Bank Support to Boost Agriculture, Economic Reforms

Published

3 weeks ago

February 4, 2026

Eric

President Bola Tinubu has called on the World Bank to support Nigeria’s ongoing economic reforms, with a focus on agriculture, youth employment, and private sector growth, as part of his administration’s strategy to strengthen the economy and expand opportunities for the citizens.

The president made the remarks on Tuesday while receiving a delegation from the World Bank led by Anna Bjerde, Managing Director of Operations, at the State House, Abuja.

“Since we went into this tunnel of reform, we have our hands on the power and we’re never going to look back. Initially, it was painful and difficult, but those who win are not the ones who give up in difficult times,” Tinubu said.

The president highlighted the importance of mechanization and modernization of agriculture to increase productivity and create opportunities for Nigeria’s large young population.

“We have mechanization centers to help farmers with improved seedlings and fertilizers to enhance their programs. The goal is to move farmers from small-scale holders to large cooperatives that can create opportunities for Nigerians,” he explained.

Tinubu also pointed to the petrochemical sector and other domestic industries as areas where the government is working to improve outputs and strengthen local markets. He stressed that reforms are continuous and must be grounded in transparency, accountability, and stability.

“The first reaction to reforms was high inflation, but it has come down dramatically, and the Naira is now stable. We want to help investors operate with ease, reduce bureaucracy, and develop the skills of our people,” he said.

Anna Bjerde commended Tinubu’s administration for its consistent and steady approach to reforms over the past two years. She highlighted that Nigeria has become a global example of reform implementation, giving confidence to investors and policymakers worldwide. “The results achieved in the last two years are commendable. Your steady communication of the importance of reforms has given confidence and clarity, and there is no turning back,” Bjerde said.

She emphasized the importance of job creation, particularly for Nigeria’s youth, noting that Africa’s young population is growing rapidly and that SMEs are central to employment generation.

“Agriculture is a huge part of the economy and a major employer. Innovations in mechanization, cooperatives, value-chain development, and infrastructure can be scaled to create more opportunities,” Bjerde said.

She also highlighted the World Bank’s financial support for Nigeria, including public sector financing of $17 billion, private sector support of $5 billion through the IFC, and investment guarantees exceeding $500 million. These instruments are aligned with Nigeria’s reforms, including trade, digital initiatives, and inflation management, to stimulate private sector growth and human development.

“We want to work with Nigeria to accelerate growth, improve access to finance for SMEs, and support early childhood development as part of a comprehensive human development strategy,” she added.

The meeting underscored Nigeria’s push to attract foreign support for strategic reforms, particularly in sectors that directly affect youth employment, food security, and overall economic growth.

Economy

New Tax Laws: Presidential Committee Tackles KPMG over Criticisms of ‘Gaps’, ‘Errors’ and ‘Omissions’

Published

2 months ago

January 11, 2026

Eric

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has pushed back strongly against observations by KPMG on Nigeria’s new tax laws, saying the firm largely misunderstood the policy intent and misrepresented deliberate reform choices.

In a detailed statement shared on Saturday on X, Oyedele said the committee welcomed constructive feedback but argued that most of KPMG’s claims were flawed. “We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws,” he said. However, he added that “the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.”

According to Oyedele, several issues described by KPMG as errors or gaps were either based on “the firm’s own errors and invalid conclusions” or stemmed from “issues not properly understood by the firm.” He stressed that policy disagreements should not be framed as technical mistakes.

Addressing concerns about the taxation of shares and potential stock market sell offs, Oyedele said such fears were unfounded. “The fact is that the applicable tax rate on share gains is not a flat 30%,” he said, noting that “a significant majority of investors (99%) are entitled to unconditional exemption.” He added that market performance at an all time high showed investors understood the reforms.

On the commencement date of the new laws, Oyedele dismissed KPMG’s suggestion of aligning reforms strictly with accounting periods, describing it as “a narrow view of the complex transition issues” involved in wholesale tax reform.

He also defended provisions on indirect transfer of shares, saying they were aligned with global best practices. “The assertion that it may affect the country’s economic stability is disingenuous,” he said, explaining that the measure was designed to block long exploited tax loopholes.

Responding to claims of gaps in VAT exemptions, Oyedele said a specific exemption for insurance premiums was unnecessary. “If it is not broken, don’t fix it,” he stated, arguing that insurance premiums were not taxable supplies under existing law.

Oyedele further criticised proposals he said would undermine reform objectives, including calls to exempt foreign insurance companies from tax and allow deductions tied to parallel market foreign exchange. He said disallowing such deductions was “a critical fiscal policy choice designed to complement monetary policy, strengthen, and stabilise the Naira.”

On personal income tax, Oyedele rejected claims that higher rates would harm growth. He said the top marginal rate was competitive globally and ensured fairness without discouraging investment.

He also accused KPMG of factual errors, including references to the Police Trust Fund, noting that its taxing provisions expired in June 2025. “KPMG’s point that the new tax law should be amended to repeal the taxing section of the Police Trust Fund Act is needless,” he said.

While acknowledging clerical issues may arise in any major reform, Oyedele said these were already being addressed internally. He urged stakeholders to engage constructively. “We urge all stakeholders to pivot from a static critique to a dynamic engagement model,” he said, stressing that the reforms marked “a bold step toward a self sustaining and competitive Nigeria.”

Economy

NANS Makes U-turn, Cancels Planned Nationwide Protest over Implementation of New Tax Laws

Published

2 months ago

January 6, 2026

Eric

The National Association of Nigerian Students (NANS) has expressed support for the recently enacted Tax Reform Laws, describing it as a well-intentioned fiscal policy aimed at strengthening Nigeria’s economy and protecting low-income earners.

Reports said the endorsement followed extensive deliberations at the maiden Expanded National Executive Council (ENEC) meeting of NANS under the theme; “National Executive Council and Structural Stakeholders’ Forum 2026 on the Tax Reform Act”, which brought together student leaders, policy experts, and key stakeholders from across the country.

The meeting, held amid public debate and controversy over the new tax law, was attended by members of the NANS National Executive Council, leaders of NAUS, NAPS, and NANCES, zonal coordinators, joint campus council chairpersons, female student associations, and other stakeholders.

Earlier concerns had prompted NANS to issue a 14-day ultimatum, threatening nationwide protests if implementation of the law was not suspended pending further investigations and public enlightenment.

However, following engagements with the National Assembly, the Department of State Services (DSS), and the Federal Inland Revenue Service (FIRS), as well as the publication of the National Assembly’s investigation report, student leaders reported being better briefed on the objectives and safeguards embedded in the law.

Chairman of the Communiqué Drafting Committee and NANS President, Comr. Olushola Oladoja, said students were satisfied with the explanations provided by the government. Tax experts from FIRS used the forum to clarify grey areas and respond to concerns raised by Nigerians, giving student leaders a clearer understanding of the reform’s intent and framework.

At the end of the meeting, ENEC resolved that the Tax Reform Law is designed to improve revenue generation, ensure fairness in taxation, and strengthen social protection for vulnerable citizens, while requiring higher-income earners to contribute more equitably. The council affirmed the authenticity of the law as released by the National Assembly and announced the cancellation of the nationwide protest that had been scheduled for January 14, 2025.

NANS also pledged to serve as ambassadors of public enlightenment, committing to educate Nigerians on the purpose and benefits of the reform to boost public confidence during its implementation.

The meeting further passed a vote of confidence in the former FIRS Chairman, Zacch Adedeji and commended President Bola Tinubu for his fiscal reforms and the NELFUND initiative, reaffirming support for his administration’s economic transformation agenda.