Omolola Oloworaran, Director-General of the National Pension Commission (PenCom), has come under scrutiny for defending the recent federal government (FG) agreement with the Academic Staff Union of Universities (ASUU) concerning professors’ pension benefits.
On January 14, the FG signed a renegotiated deal with ASUU to resolve ongoing strikes in public universities. Under the agreement, professors on the consolidated university academic salary structure (CONUASS) 07 and 06 will receive annual allowances of ₦1,740,000 and ₦840,000, respectively. The arrangement also promises enhanced pension benefits, reportedly allowing professors to receive a pension equivalent to their annual salary at retirement at age 70, along with a 40% salary increase for academic staff.
Financial analysts and experts have expressed concern that the deal could signal a return to the costly Defined Benefit Scheme (DBS), which Nigeria abandoned two decades ago due to funding challenges. Kalu Aja, a financial analyst, warned that the arrangement may place a new strain on the federal budget, arguing that moving back to a DBS model could be unsustainable.
In defense, Oloworaran insisted that the agreement does not constitute a return to the old DBS. She noted that the Pension Reform Act (PRA) 2014 allows professors to retire at age 70 with enhanced benefits, including up to 100% of their last salary, provided any shortfall is funded. Oloworaran emphasized that the government has now addressed funding and implementation issues, clearing long-standing pension arrears and ensuring that the Contributory Pension Scheme (CPS) remains intact.
Despite this clarification, critics like investment accountant Feyi Fawehinmi have dismissed her statements as “nonsensical,” questioning the sustainability of the system when arrears persist and government bonds are used to cover pension obligations.
