By Chimezie Godfrey
A Civil Society Organisation (CSO) has advised against the exemption of internal security agencies from the Contributory Pension Scheme (CPS), owing to its tremendous impact on national security.
The Chairperson, Conference of Civil Society of Nigeria, Comrade Adams Otakwu made the assertion recently in Abuja during a press conference on Pension Education Program, with the theme, “Impact of the Contributory Pension Scheme (CPS) on National Security”
Comrade Otakwu stressed the need for the link between the Contributory Pension Scheme (CPS) and national security to be properly established.
According to him, this would galvanise greater participation in the scheme, noting that assets under the CPS amounts to about N13.4 Trillion which is almost 8.55% of Nigeria’s GDP.
He therefore warned that exempting internal security agencies from participating in the CPS would take severe toll on National Security.
He said, “As part of our Pension Education Program, there is a need to properly establish the link between the Contributory Pension Scheme (CPS) and national security. This is necessary in order to galvanise greater participation in the CPS by eligible citizens and security operatives, recognizing that the total pension fund assets under the CPS is currently about N13.4 Trillion, which is alomost 8.55% of the Nigerian Gross Domestic Product.
“The CPS over the period, has catalyzed the implementation of pro-masses and public interest programs in key sectors, including aiding the investment in bonds, treasury bills, agency bonds and other government securities, as well as money market instruments, corporate debt securities, quoted equities and other asset classes, and stemmed the growth of outstanding pension liabilities of Government.
“These all have significantly enhanced Economic growth, built foreign investors confidence and bolstered National Security. We believe such critical impact of the CPS on National Security had prompted Government to allow withdrawal from the CPS for only the Military and Intelligence Services, which are by virtue of Section 5 of the Pension Reform Act (2014) exempted from the CPS.
“Exempting Internal Security Agencies from the CPS will not only disrupt the Pension Reform Program, and affect the flow of capital into the insurance industry that undermines the Economic Recovery and Growth Plan, but place undesired financial obligation on Government, at a time when the war on insecurity needs enormous resource commitment. This will take very severe toll on National Security, and should not be contemplated.”
