As Nigeria grapples with economic challenges, a spotlight has been cast on the pensions awarded to former state governors. The generous packages, which include substantial pensions and numerous perks, are drawing criticism for diverting funds from essential services. Is Nigeria paying too high a price for the comfort of its ex-governors?
A recent report by BudgIT, a civic organisation focused on transparency in public finance, sheds light on the issue.
The report, titled “State Governors’ Pension: Scaling Back Fiscal Imprudence,” reveals the significant financial burden these pensions place on state resources. Introduced by Bola Tinubu-led Lagos State government in 2007, this practice has been widely adopted, leading to extravagant pension laws in many states.
The High Cost of Comfort
Former governors receive pensions equivalent to the salary of the incumbent governor, alongside other luxurious benefits.
Breaking down the pension payments accrued to former governors and their deputies, BudgIT noted that every former governor gets 100 per cent of the annual basic salary of the incumbent governor in each state.
In addition to the above, BudgIT noted the following as other pension benefits that each former governor and former deputy governor get:
- One residential house for each ex-governor and deputy at any location of their choice in Lagos State;
- One residential house in the Federal Capital Territory for the governor on two consecutive terms;
- Three cars for the governor and, in addition, one pilot and two backup vehicles to be replaced every three years;
- There will be two cars for the deputy governor and, in addition, one pilot and one backup car, which will be replaced every three years;
- 20 per cent on annual basic salary for utility bill;
- 300 per cent on annual basic salary payable every two years en-bloc for furniture;
- 10 per cent on annual basic salary for house maintenance;
- Cook, steward, gardener, and other domestic staff who shall also be pensionable;
- Free medical treatment for the ex-governors and members of their immediate families;
- Two SSS details for the governor and one female officer, eight policemen (four each for house and personal security). One SSS detail for the deputy governor, two policemen (one each for house and personal security;
- Pensionable drivers;
- 25 per cent on annual basic salaries for personal assistants;
- 30 per cent on annual basic salaries for car maintenance;
- 10 per cent on annual basic salary for entertainment.
According to BudgIT, these payments are payable as pensions and charged upon the consolidated revenue fund of the states.
In Lagos State, for instance, this includes homes in upscale areas, brand-new vehicles every three years, free healthcare, and domestic staff. These benefits represent a substantial cost to the state budget.
The fiscal impact is evident across other states as well. Gombe State allocates up to 65 per cent of its internally generated revenue to pensions for ex-governors, while Yobe State spends more than 27 per cent of its annual revenue on similar obligations. Such figures raise critical questions about the sustainability of these expenditures.
Double Dipping: A Fiscal Dilemma
The issue of “double dipping” compounds the problem. Many former governors, upon leaving office, secure other public roles such as senators or ministers, drawing salaries from these positions while still receiving their pensions. This practice, highlighted in the BudgIT report, has sparked outrage and led to legislative changes in some states. Kano and Kwara, for example, have amended their pension laws to prevent former governors from receiving pensions while holding other public offices.
Inequity in Public Service Compensation
The disparity between the pensions of former governors and ordinary civil servants underscores a broader issue of social justice. While some civil servants retire on modest pensions as low as N2,000 per month, according to BudgIT, former governors enjoy financial comfort far exceeding what most citizens earn. This stark contrast fuels resentment and raises fundamental questions about the fairness of Nigeria’s pension system.
Calls for Reform
With Nigeria’s states facing budget deficits and escalating debt, the current pension arrangements for former governors appear increasingly untenable.
The BudgIT report estimates that these pensions have cost the states over N400 billion since 1999. The organisation calls for a thorough review of the system, advocating for reduced benefits and aligning ex-governors’ pensions with the broader public service framework to free up resources for critical needs like infrastructure, healthcare, and education.
The pensions of former governors have become a flashpoint in Nigeria’s ongoing struggle with fiscal sustainability. As economic reality bites harder, the country must reconsider whether it can afford to maintain such high levels of comfort for a select few at the expense of its broader population.
Policymakers face a challenging task: ensuring that compensation for public service remains fair while safeguarding the nation’s fiscal health and the future of its citizens.
