PenCom, NSIWC Intervene in NAMA, Retirees’ Pension Dispute as Actuarial Report Clears Grey Areas

The National Pension Commission (PenCom) and the National Salaries, Incomes and Wages Commission (NSIWC) have stepped in to defuse brewing tension between the management of the Nigerian Airspace Management Agency (NAMA) and its retirees over outstanding pension adjustments.

At the heart of the friction are harmonised pension benefits and adjustments spanning multiple review periods—specifically 2007, 2010, 2019, and 2024.

The breakthrough followed a joint weekend meeting at NAMA’s Abuja headquarters, where management and retiree representatives agreed to defer to PenCom and the NSIWC for definitive technical, legal, and regulatory interpretations on specific pension buckets.

The high-level intervention became necessary following intense friction stemming from allegations that over 1,000 NAMA retirees had petitioned the Federal Government regarding unpaid pension increments.

The retirees contended that under Section 173(3) of the 1999 Constitution, their pensions must automatically increase in tandem with salary reviews for active staff, citing omitted federal pension increases alongside the ₦32,000 monthly consequential adjustment.

However, documents made available to Aviation Metric countered these claims, revealing that only 54 retirees have outstanding settlements, which NAMA is already working to defray.

To break the deadlock, NAMA’s Managing Director, Farouk Umar, adopted a data-driven approach, commissioning a comprehensive actuarial assessment to determine the exact financial implications and individual entitlements for the milestone years. The report has been completed, and administrative implementation is underway.

NAMA clarified that accrued rights for personnel who transitioned from the old Defined Benefit Scheme to the Contributory Pension Scheme (CPS) in June 2004 have been fully settled and transferred to individual Retirement Savings Accounts (RSAs).

Speaking on the outcome of the meeting, NAMA’s General Manager, Industrial Relations, Dr Solomon Ohiomah, described the session as a “tie-breaker” that brought much-needed clarity to grey areas.

“The issue of the monthly pension was laid bare. PenCom and the Wages Commission came out clearly to state that retirees under the pension scheme after July 1st, 2007, are not entitled to any form of [direct agency] pension because all their contributions, both by the employer and the employee, have been transferred to their PFA as an opening balance,” Ohiomah explained.

He added that NAMA has fully complied with government directives, discharging its liabilities for anyone who retired after January 1st, 2007, by moving their benefits to their respective PFAs.

Addressing the demand for automatic percentage increments, the NSIWC clarified that NAMA is not obligated to implement blanket percentage increases pronounced by the Federal Government.

Such increments apply strictly to agencies on the Harmonised Salary Structure. As an internally generated revenue (IGR) funded, self-sustaining agency, NAMA’s adjustments are not automatic.

Moving forward, any upward review will require NAMA to approach the NSIWC, which will advise the agency on feasible percentages based on its revenue profile and financial exposures.

While reiterating his administration’s unwavering commitment to the welfare of senior citizens who kept Nigerian airspace safe for decades, the NAMA MD maintained that strict adherence to civil service rules and pension guidelines remains non-negotiable.

The trilateral alignment among NAMA, PenCom, and the NSIWC establishes a unified compliance pipeline, ensuring all future adjustments strictly mirror the provisions of the Pension Reform Act.

Ohiomah said, “Everyone needs everyone as far as this issue is concerned. We appreciate the management, particularly the managing director, for having the patience to be able to bring everybody to the table and also bring in regulatory bodies to throw more light and give clarification where we feel or where the agency feels that there are some grey areas”.

“You can see today, the PENCOM and the wages commission were well represented by their management staff. The issue of the monthly pension; they came out clearly that retirees under the pension scheme after July 1st 2007 are not entitled to any form of pension because all their contributions, both by the employer and the employees, have been transferred to their PFA as an opening balance”.

“NAMA has complied with the government directive, and anyone who retired after January 1st 2007 has had their benefits paid. NAMA has discharged itself of that liability and is now with its PFA. For any increment to happen, NAMA was also clear today that NAMA is not obligated, as also explained by the wages commission, that NAMA is not obligated to implement any percentage increase as pronounced by the government”.

“Such a percentage increase only affects people on the harmonised Salary structure, of which NAMA is not part, as a self-funded agency that is IGR funded. We only apply increases when they review their salary, and these increases are not automatic. NAMA has to approach the national wages commission, which will advise them appropriately on the percentage based on their revenue and other exposures”.

Wole Shadare