By Oluwakemi Kindness
Police officers may soon receive higher retirement benefits as the Federal Government considers a proposal to increase its pension contribution for police personnel from 10 per cent to 20 per cent.
The proposal was disclosed by Muhammed Dutse, Acting Managing Director and Chief Executive Officer of NPF Pension Limited, at a media engagement and company’s digital pension service platform designed to improve access to pension services for police personnel and retirees nationwide.
According to Dutse, the proposal, submitted by the National Pension Commission (PenCom) to President Bola Tinubu, is aimed at addressing concerns over low pension payouts among retirees under the Contributory Pension Scheme.
He said the current contribution structure has become inadequate to meet the retirement needs of many retirees despite previous reforms.
“Indeed, pension is a function of salary, like we all know,” Dutse said.
He explained that when the Contributory Pension Scheme was introduced, employers and employees each contributed 7.5 per cent of salaries. However, following a review of the Pension Reform Act (PRA), the contribution rate was increased in 2014 to 10 per cent for employers and eight per cent for employees.
“But 10 years later, we realised that that figure is not adequate. So when the PRA was repealed and reenacted in 2014, it was increased to 10% of employer and 8% of employee,” he said.
Dutse noted that the current arrangement is still falling short of expectations.
“Now down the line, 10 years later, we realise that that is not also adequate. And that is what is affecting our retirees today,” he added.
FG Contribution Could Rise to 20%
Providing details of the proposal before President Tinubu, Dutse said the Federal Government’s monthly contribution for police officers would increase from 10 per cent to 20 per cent, while officers would continue contributing eight per cent.
“The proposition given to Mr. President is to ensure that at least for police officers, the monthly contribution will be increased by federal government from 10% to 20% while they will still contribute 8%, making a total of 28%,” he said.
According to Dutse, the increased contribution would strengthen Retirement Savings Accounts (RSAs) and improve retirement outcomes for police personnel.
“That way, we believe in the near future, five to seven years’ time, the RSA will be able to take care of their pension needs without having to go to government to augment what they are receiving.”
He added that the Pension Reform Act is currently undergoing another review and expressed optimism that further measures would emerge to improve pension adequacy.
“As we speak right now, the PRA is undergoing review. And we do hope that at the end of the review, they will come up with better propositions in order to address that,” he said.
Dutse stressed that the challenge of low pensions extends beyond the Nigeria Police Force.
“Frankly speaking, the issue of low pension is not only affecting police officers. Generally, civil servants are complaining,” he said.
NPF Pension Records Nearly 30,000 Digital Platform Users
Meanwhile, Dutse revealed that nearly 30,000 police personnel have enrolled on NPF Pension’s newly launched digital platform even before its official commissioning.
He said the platform was developed to make pension services more accessible to police officers and retirees across Nigeria, especially those serving in remote locations.
According to him, increasing transportation costs and current economic realities have made physical visits to pension offices more difficult for many contributors.
Dutse said the digital platform enables users to access pension information and services remotely, reducing the need for travel and improving service delivery.
He expressed confidence that enrolment figures would continue to rise as awareness of the platform expands nationwide.
The Acting MD/CEO also called on media organisations to help educate police personnel and retirees about the platform, describing public awareness as critical to the success of the initiative.
According to Dutse, the digital transformation programme is part of NPF Pension Limited’s broader efforts to improve customer experience, enhance accessibility and deliver more efficient pension services to contributors across Nigeria
