BY OLAPEJU OLUBI
The National Pension Commission (PenCom) and the National Salaries, Incomes and Wages Commission (NSIWC) have intervened to resolve the pension dispute between the Nigerian Airspace Management Agency (NAMA) and its retirees, paving the way for a regulatory resolution of outstanding pension adjustments.
The intervention followed a joint meeting between NAMA management and representatives of its retirees held over the weekend at the agency’s headquarters in Abuja, where all parties agreed to defer to PenCom and the Wages Commission for technical, legal and regulatory clarification on disputed pension entitlements.
The meeting came amid rising tensions after some retirees alleged that NAMA had failed to implement approved pension increases covering the 2007, 2010, 2019 and 2024 review periods, including the ₦32,000 monthly consequential adjustment approved by the Federal Government.
The retirees, who had appealed to the Federal Government to intervene, argued that more than 1,000 former employees were affected and maintained that Section 173(3) of the 1999 Constitution guarantees pension increases whenever salaries of serving workers are reviewed.
However, documents presented during the meeting indicated that only 54 pension cases remain outstanding, with NAMA saying efforts are underway to settle them.
To address the lingering disagreement, NAMA’s Managing Director, Farouk Umar, directed the commissioning of a comprehensive actuarial assessment to determine the exact financial implications and individual pension adjustments relating to the disputed years.
The actuarial report has since been completed, while implementation of its administrative recommendations is ongoing.
The agency said the data-driven approach was adopted to establish the actual liabilities and eliminate uncertainties surrounding the pension obligations.
NAMA also clarified that accrued pension rights for employees who migrated from the old Defined Benefit Scheme to the Contributory Pension Scheme (CPS) in June 2004 had been fully settled and transferred into their respective Retirement Savings Accounts (RSAs).
According to the agency, the intervention by PenCom and the Wages Commission has created a unified compliance framework that will ensure any future pension adjustments strictly conform with the provisions of the Pension Reform Act and existing public service regulations.
Speaking after the meeting, NAMA’s General Manager, Industrial Relations, Dr. Solomon Ohiomah, described the engagement as a “tie-breaker” that helped address concerns raised by both management and the retirees.
“Everyone needs everyone as far as this issue is concerned,” he said.
“We appreciate the management, particularly the Managing Director, for having the patience to bring everybody to the table and also invite the regulatory agencies to provide clarification where there were grey areas.”
Ohiomah said officials of PenCom and the Wages Commission clearly explained that retirees who exited service after July 1, 2007 under the Contributory Pension Scheme are not entitled to pension increases from NAMA because both employer and employee contributions had already been transferred to their Pension Fund Administrators (PFAs) as opening balances.
He added that NAMA had complied fully with government directives regarding accrued pension rights and had discharged its obligations to employees who retired under the CPS.
“For any increment to happen, NAMA is not obligated to implement percentage increases announced by the government,” he explained.
According to him, government-approved percentage salary adjustments apply only to organisations operating under the harmonised public service salary structure, which excludes NAMA as a self-funded agency financed through internally generated revenue.
He noted that whenever NAMA reviews salaries, it must first obtain guidance from the National Salaries, Incomes and Wages Commission, which determines the appropriate adjustments based on the agency’s revenue profile and financial obligations.
Despite the regulatory position, NAMA’s management reiterated its commitment to the welfare of its retirees, acknowledging their decades of service in ensuring the safety of Nigeria’s airspace, while insisting that all pension payments and future adjustments must remain consistent with civil service rules and pension regulations.
Olapeju is a journalist and aviation reporter.
