NAMA, NSIWC tackle agency’s retirees pension dispute

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

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

Under the Managing Director, Farouk Umar, NAMA commissioned a comprehensive actuarial assessment to map out the exact adjustments required for those milestone years. The report has been completed, and administrative implementation is underway.

Following a joint meeting between NAMA management and retiree representatives, held at the agency’s head office in Abuja, all the parties agreed to defer to PenCom and the Wages Commission to clarify technical, legal, and regulatory interpretations regarding specific pension buckets.

The meeting was necessitated by friction following allegations that over 1,000 NAMA retirees had appealed to the Federal Government for intervention regarding unpaid pension increments.

The retirees argued that NAMA failed to implement and pay approved federal pension increases spanning 2007, 2010, 2019, and 2024, (including the ₦32,000 monthly consequential adjustment). They contended that under Section 173(3) of the 1999 Constitution, their pensions must increase in line with salary reviews for active staff.

Documents made available showed only 54 are outstanding, which the agency is working to defray as soon as possible.

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).

The intervention effectively defuses tension by establishing a unified compliance pipeline among NAMA, PenCom, and the NSIWC, ensuring that any further adjustments strictly align with the provisions of the Pension Reform Act.

The breakthrough came following a strategic directive by NAMA’s Managing Director, Farouk Umar, who opted for a data-driven approach to break the deadlock.

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The agency commissioned a comprehensive actuarial assessment to determine the exact financial implications and individual entitlements tied to the milestone years under review.

The NAMA MD reiterated its commitment to the welfare of its senior citizens, acknowledging their decades of service in keeping Nigerian airspace safe.

He, however, maintained that adherence to civil service rules and pension guidelines remains non-negotiable.

NAMA’s General Manager, Industrial Relations, Dr Solomon Ohiomah, described the meeting as a ‘tie-breaker’ concerning agitations on both sides, both on the side of the retirees and on the side of the management.

“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,” he said.