The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has decried the dwindling value of pensions received by retirees in the oil and gas industry, describing it as worrisome and unsustainable.
The union said it was disturbed that many pensioners who retired under the defined benefit schemes decades ago now earn stagnant and inadequate benefits despite rising inflation and currency devaluation, reports The Nation.
Speaking during a stakeholders’ engagement on the state of closed pension fund administrators (CPFAs) in the sector, PENGASSAN President, Comrade Festus Osifo, said, “We have observed with deep concern that many of our retirees are going through hardship because their pensions have remained static for years.
“Some retired as far back as 1990 or 2010, but what they take home monthly today has lost its value due to inflation and the fall of the naira.
He noted that while a few CPFAs reviewed pension payments periodically, the majority left retirees’ welfare at the discretion of management.
“In about 90 per cent of the closed pension schemes, the benefits do not grow. The retirees depend solely on the goodwill of management for any form of increment,” Osifo stated.
The PENGASSAN president urged the National Pension Commission (PenCom) and oil companies such as Chevron, TotalEnergies, ExxonMobil, and Nigerian National Petroleum Company Limited (NNPCL) to review actuarial assumptions and ensure fair adjustments in pension payments.
Osifo added, “We are going to engage the management of these organisations and advocate for reforms that will restore dignity to our retirees.
“Today’s pensioners were once union veterans who fought for workers’ rights. It is now our duty to fight for their comfort.”
Osifo commended PenCom for its professionalism and urged the Commission to maintain its transparency and strengthen oversight of the CPFAs to guarantee retirees’ long-term security.
“We still believe PenCom remains one of the most credible regulatory institutions in the country. We urge them to stay true to that reputation and protect the interests of pensioners,” he said.
Director-General of the National Pension Commission (PenCom), Mrs. Omolola Oloworara, reaffirmed the Commission’s commitment to ensuring that CPFAs remain stable, compliant, and transparent in all their operations.
Oloworara, who was represented by the Head of Investment Supervision Department, Mr Abdulqadir Dalhatu, said PenCom had introduced new supervisory mechanisms and compliance frameworks to strengthen the governance of CPFAs and ensure that contributors’ funds are adequately protected.
The DG said, “Our goal is to maintain public confidence in the pension system while driving innovation and sustainability.
“We are continuously reviewing the investment guidelines to align with global best practices and ensure the long-term safety of pension assets.”
The DG noted that the Commission was open to collaboration with Organised Labour, pension operators, and employers to enhance benefit adequacy and promote retirees’ welfare.
“We recognise the challenges caused by inflation and exchange rate fluctuations, and PenCom is exploring measures that could ensure that retirees’ purchasing power is better protected,” the DG added.
Also speaking, Managing Director of TotalEnergies CPFA, Mr. Benjamin Okeke-Agedi, said CPFAs had comparative advantages in investment flexibility and portfolio diversification.
Okeke-Agedi, who was represented by Mr. Wale Olasoji, Chief Finance Officer of the company, said: “CPFAs have the advantage of conditional approval of investments under the fund provisions, which allows for global partnerships and diversification.
“This provides a hedge against policy shocks and enhances long-term sustainability.”
Okeke-Agedi said CPFAs must leverage technology, innovation, and sustainable investment strategies to remain relevant in modern financial ecosystems.
He said, “Adopting digital platforms for member services, data analytics, and real-time reporting will enhance efficiency, reduce costs, and improve transparency.
“Artificial intelligence can support portfolio optimisation and predictive risk assessment.”
He further emphasised that environmental, social, and governance (ESG) principles should guide future pension fund investments.
Okeke-Agedi said, “For CPFAs to thrive, they must integrate ESG reporting and invest in impactful asset classes such as infrastructure and green housing to support Nigeria’s energy transition goals
He urged all stakeholders — employers, regulators, and unions — to work together to uphold strong governance, risk management, and transparency across the sector.
“The sustainability of CPFAs depends on collective responsibility, sound regulation, and continued innovation.”
