PenCom Did Not Spend N9 Billion On Salaries In 8 Months, Contrary To Reports

Facts have emerged to show that the allegation that the National Pension Commission (PenCom) spent about N9 billion on payment of salaries of 386 staff of the commission in 2019 is untrue.

Some media reports had claimed that each of the 386 staff of Pencom would have earned an average of N2 million per month or N24 million per year as salaries. 

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But figures obtained by THE WHISTLER show that the claims, including alleged inflation of the 2019 budget of the commission, were far from the truth.

The reports had claimed that a joint panel of the Senate and House of Representatives Committees on Pensions demanded details of salary payment to the 386 staff members of PenCom, and found that the commission allegedly earmarked N9 billion as the budget for salaries within a year.

The reports also claimed that the National Assembly had criticised the alleged utilisation of over N12.283bn of the Internally Generated Revenue( IGR) of the PenCom, when it appeared before the panel in Abuja to defend its 2020 budget proposal.

The reports claimed that a total of N12.283bn was realised as IGR by PenCom between January and August 2019, out of which N8.264bn was allegedly spent on personnel cost, overheads cost and capital expenditure within the period under review.

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It was alleged that PenCom spent about N5.917 billion on personnel cost against the budget sum of N11.066bn; N2.288bn on overhead cost, against N5.916 billion budgeted and N58.89m spent so far on capital, against N1.984bn budgeted for 2019.

While the pension regulator indeed generated N4.09 billion, N4.97 billion and N3.22 billion as IGRs in the first, second and third quarters of 2019 respectively (N12.28 billion total), other figures quoted in the reports were incorrect.

Official figures from PenCom showed that out of the N12.28 billion generated within the period under review, the commission spent 5.92 billion on personal costs, N2.29 billion on overhead cost and N58.89 million on capital expenditure.

Further breakdown of the N5.92 billion personal costs showed that N5.22 billion was for staff salaries and N701.25 million was spent on allowances.

Also, the staff strength of 386 quoted in the reports was incorrect as PenCom had a total of 402 workers as of January 1, 2019.

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However, due to the retirements of some staff members within the year, the Commission’s staff strength dropped to 368 as at October 2019.

Going by available records, it is not factual to say that 386 staff members on PenCom’s payroll collected about N9 billion salaries estimated at an average of N2 million monthly per staff member in eight months.

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