The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised concerns over the declining purchasing power of pensions for retirees in the country’s oil and gas industry, calling the situation “unsustainable.”
At a recent stakeholders’ engagement on closed pension fund administrators (CPFAs), PENGASSAN President, Comrade Festus Osifo, highlighted that retirees under long-standing defined benefit schemes are struggling as their pensions have remained largely stagnant despite inflation and the devaluation of the naira.
“Many retirees, some of whom left service decades ago, are facing financial hardship because their benefits have not kept pace with economic realities,” Osifo said. He added that while a small number of CPFAs periodically adjust payments, most retirees depend solely on the goodwill of management for any increases.
Osifo urged regulators and oil companies, including Chevron, TotalEnergies, ExxonMobil, and NNPC, to review actuarial assumptions and ensure fair adjustments to pension payments. He stressed that today’s retirees, many of whom were union leaders, deserve continued advocacy for their welfare.
He also praised the National Pension Commission (PenCom) for its transparency and professionalism, encouraging the commission to maintain strict oversight of CPFAs to protect retirees’ long-term security.
Representing PenCom, Head of Investment Supervision, Mr. Abdulqadir Dalhatu, reaffirmed the commission’s commitment to stability and compliance within CPFAs. He said new supervisory frameworks and investment guidelines are being implemented to safeguard contributors’ funds while maintaining public confidence in the pension system.
Dalhatu acknowledged challenges posed by inflation and currency fluctuations and stated that PenCom is exploring measures to preserve retirees’ purchasing power.
Also speaking at the event, TotalEnergies CPFA Chief Finance Officer, Mr. Wale Olasoji, highlighted the advantages CPFAs have in investment diversification and flexibility. He encouraged the adoption of digital platforms, artificial intelligence for risk assessment, and adherence to environmental, social, and governance (ESG) principles to ensure sustainable growth and long-term returns for pension funds.
Osifo concluded by reaffirming PENGASSAN’s dedication to protecting the welfare of both active and retired oil workers, emphasizing that the union will continue to advocate for reforms that uphold dignity and financial security for retirees.
