By Olusegun Olanrewaju
What happened in Lagos recently is a signal to the time bomb awaiting the payment of pensions to ex-governors and their deputies after leaving offices nationwide.
Following a committee report in 2020, the Lagos State House of Assembly stirred the hornet’s nest, annulling by half what has been signposted as ‘jumbo pensions’ to former state chief executives and their assistants, after they had ruled their states. It does not matter how well.
House Committee Chairman on Establishments, Training and Pension, Yinka Ogundimu (representing Agege 11 State |Constituency), after a plenary, announced the amendment of Public Office Holders (Payment of Pension Law 2007), slashing pension and emoluments due to ex-governors and their deputies by half, across the board.
Ogundimu said the committee reduced the ex-state helmsmen’s benefits “based on the present economic situation of the state”.
The lawmaker added that the Assembly had expunged the provision of houses in Abuja and Lagos for former governors, as stipulated in an earlier law operated by the state.
The chairman said the committee’s report presented to the House had shown a reduction in the number of vehicles to be made available to former governors and their deputies, among others.
The House specifically expunged the provision of houses in Abuja and Lagos to the ex-governors, as well as slashed the number of vehicles to be made available for their use after ‘retirement’.
The request
A bill for ‘withdrawal’ had been submitted to the Assembly on November 20, 2020, by Governor Sanwo-Olu
In it, the governor sought an amendment to the 2017 Pension Law to stop huge amounts paid to former governors and their deputies.
Before the move, Speaker Mudashiru Obasa had suggested that the former governors should get only two vehicles (a car and a van), instead of the three recommended by the committee.
Obasa also said the amended bill should provide that the cars be only changed every four years, instead of the three recommended by the report.
The speaker further advised that the reduction should be left at 50 per cent, especially as the report had recommended the removal of houses and reduced other benefits.
Recalling the recent murder of the president of Haiti, Jovenel Moise, at his private residence, Obasa pleaded that it was necessary to also secure the lives of the former state officeholders.
But some lawmakers backed the committee’s report, saying it would have a positive impact on the state’s Internally-Generated Revenue (IGR).
Yet, some lawmakers kicked against the repeal of the law in its entirety, insisting that there were some important sections and stipulations that needed consideration.
The ex-Lagos governors currently benefitting from the ‘jumbo pensions’ are Asiwaju Bola Tinubu (who initiated the jumbo pension war), plus his successors Babatunde Fashola, and Akinwumi Ambode.
Contentious law, controversial tinkering
The Lagos State Governor and Deputy Governor Pensions Law of 2007, provides that “the former governor is entitled to six new cars every three years, a house in Lagos, and another in Abuja.
“Conservatively, a house in Lagos will cost N750 million and one in Abuja N1 billion. The former governor and family (spouse and children ─ both married and unmarried), are entitled to free medical, which is not capped.
“Another highlight is that the ex-governor is entitled to a cook, steward, gardener, and other domestic staff, who are pensionable.
“Other benefits are the annual basic salary: 100 per cent of annual basic salaries of the incumbent governor and deputy.
“Transport: Three cars, two back-up cars, and one pilot car for the ex-governor every three years; two cars, two back-up cars and one pilot car for the deputy, every three years.
“They are also entitled to 300 per cent of annual basic salary every two years. House maintenance: 10 per cent of annual basic salary for domestic staff: Cook, steward, gardener, and other domestic staff (no limit) who shall be pensionable.
“They are also entitled to free medical treatment for ex-governor and deputy and members of their families (not just spouses).’’
Other jumbo perks outlined for the governors and their deputies include:
“Security: Two SSS (State Security Service) operatives, one female officer, eight policemen (four each for house and personal security) for the ex-governor; one SSS operative and two policemen (one each or house and personal security) for the deputy, ”the laws provided.
The intervention
Governor Babajide Sanwo-Olu gave a hint on the touchdown to the pension during his 2021 budget presentation to the House of Assembly.
He said he would send an Executive Bill to scrap the law because the entitlements were not sustainable due of financial constraints.
Announcing the N1.155 trillion “Budget of Rekindling Hope”, the governor said the repeal of the law would reduce the cost of governance and foster the spirit of selfless service.
He said: “In the light of keeping the costs of governance low and to signal selflessness in public service, we will be sending a draft Executive Bill to the House immediately for the repeal of the Public Office Holder (Payment of Pension Law, 2007), which provides for payment of pension and other entitlements to former governors and their deputies.
“It is our firm belief that with dwindling revenues and the apparent inflationary rates, we need to come up with innovative ways of keeping the cost of governance at a minimum while engineering a spirit of selflessness in public service.”
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Controversy
According to records, the former Lagos governors entitled to the benefits under the law are Alhaji Lateef Jakande (1979-1983), Asiwaju Bola Tinubu (1999-2007), Babatunde Fashola (2007-2015), and Akinwunmi Ambode (2015-2019).
The ex-deputy governors are Alhaja Sinatu Ojikutu (1991-1993), Senator Kofoworola Bucknor-Akerele (1999-2002), Mr. Olufemi Pedro (2002-2007), Prince Abiodun Ogunleye (2007), Princess Sarah Sosan (2007-2011), Mrs Adejoke Orelope-Adefulire (2011-2015), and Dr Idiat Adebule (2015-2019).
The law stated that an ex-governor was entitled to a N30 million pension annually, a house in Lagos and Abuja, six brand new cars every three years, medical allowances and treatment in the hospital of choice in any part of the world, and other allowances.
However, the implementation of the Pension Law 2007 did not take off immediately.
In fact, two years after it was passed, the now late Jakande said he was yet to be paid the retirement benefits.
Second Republic deputy governor, the late Alhaji Rafiu Jafojo, wrote a letter of complaint to former Governor Fashola over the non-implementation of the law at the time.
The review
A Lagos Federal High Court had ordered the stoppage of pensions to ex-governors and their deputies nationwide.
It directed the Attorney-General of the Federation (AGF), Abubakar Malami, to review states’ pension laws, followed a suit filed by the Social and Economic Rights Accountability Project (SERAP).
Zamfara State House of Assembly immediately complied with the court order by repealing the state’s pension law.
Reacting to Sanwo-Olu’s plan, Lagos lawyer, Jiti Ogunye, said it was long overdue.
He described the law as controversial, contentious, burdensome and unnecessary.
The lawyer said the repeal would reduce of cost of governance and end frivolous government spending.
The debate
About 24 states across the federation aped Lagos by subsequently providing ‘generous’ pensions to their former governors and their deputies.
In Lagos, for instance, the two elected officials were entitled to houses in Abuja and Lagos, six new cars every three years, 100 per cent of the incumbent governor’s basic salary (for the governor), and free healthcare for their family members, among others.
The new bill aimed at scrapping payment of these benefits to former governors in the state, including ex-governor Bola Tinubu.
At the second reading of the bill in the House, several arguments were raised by lawmakers, with some in support of the bill, and others, against it.
A supporter, Rotimi Abiru, representing Shomolu II, said the “The Public Office Holder (Payment of Pension Law 2007)” should be amended, rather than repealed.
“For a person who has served as chief executive of a state, I do not think it is nice denying them of their benefits.
“I can appreciate that some of them move to other appointments. For these people, there can be a caveat. But for those who serve in that capacity and do not have any other thing to do after office, it may not be something elaborate, but something may be coming to them periodically.”
But Ogundimu, whose camp had the last laugh of the perks’ court, argued that the bill should ‘put into consideration the country’s current economic challenges.
He maintained that the bill should be amended in a way that would not negatively affect the security the public officials, observing that, if the original law was repealed, it would mean withdrawing all the security agents and domestic staff earlier attached to the former helmsmen.
The lawmaker argued that governors and their deputies “should be made to enjoy some benefits no matter how little, and should include retaining their security agents and domestic staff”.
Other states: The bandwagon effect
Other states soon joined the pension payment bonanza, such as Rivers, Akwa Ibom, Kwara, They did what is known in local parlance, ‘follow follow’.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) approves payment of 300 per cent basic salary as severance allowances for political office holders on leaving office.
However, many state assemblies approved a wide range of entitlements for ex-governors and their deputies unilaterally.
Experts note that the Code of Conduct Bureau (CCB) Act doesn’t prohibit the former governors from drawing dual remuneration simultaneously, but there were concerns on the financial implications on the states.
President Buhari had said that 27 states were struggling to pay salaries, despite collecting N662 billion bailout funds from the Federal Government the preceding year.
Some former governors who had served as senators were: Bukola Saraki (Kwara), Rabiu Musa Kwankwaso (Kano), Kabiru Gaya (Kano), Godswill Akpabio (Akwa Ibom), Theodore Orji (Abia), Abdullahi Adamu (Nasarawa), Sam Egwu (Ebonyi), Sha’aba Lafiagi (Kwara), Joshua Dariye (Plateau) and Jonah Jang (Plateau).
Others included Aliyu Magatakarda Wamakko (Sokoto), Ahmed Sani Yarima (Zamfara), Danjuma Goje (Gombe), Bukar Abba Ibrahim (Yobe), Adamu Aliero (Kebbi), George Akume (Benue) and Isiaka Adeleke (Osun).
The former deputy governors in the Senate were Ms Biodun Olujimi (Ekiti) and Enyinaya Harcourt Abaribe (Abia), while Danladi Abubakar Sani was the acting governor of Taraba State.
The former governors who eventually served as ministers include Rotimi Amaechi (Rivers), Kayode Fayemi (Ekiti), Chris Ngige (Anambra) and Babatunde Fashola (Lagos)
Details of the largesse for ex-governors
Sequel to the provisions of the Lagos Pension Law approved by former governor Bola Tinubu in 2007, the cost of the properties to be awarded to the former governor for life included two houses, one in Lagos and Abuja have been estimated by property experts at N500 million and N700 million respectively.
The six brand new cars replaceable every three years cost millions, while furniture allowance would gulp 300 per cent of annual salary to be paid every two years.
Close to N2.5 million would be paid to each beneficiary as pension per month, totalling about N30 million annually.
Each beneficiary would also enjoy security detail, free medicals, including for his immediate family.
Other benefits include ten per cent house maintenance, 30 per cent car maintenance, ten per cent entertainment, 20 per cent utility allowance, and several domestic staff.
In Rivers, the law provided 100 per cent of annual basic salaries for an ex-governor and the deputy, one residential house for former governor “anywhere of his choice in Nigeria”, one residential house anywhere in Rivers for the deputy, three cars for the ex-governor every four years, and two cars for the deputy every four years.
The ex-governors furniture allowance was pegged at 300 per cent of annual basic salary every four years, payable en bloc. House maintenance is 10 per cent of the annual basic salary.
In Akwa Ibom, the law provided for N200 million annual pay to ex-governors and deputies. The ex-governor enjoys a pension for life at a rate equivalent to the salary of the incumbent governor/deputy governor respectively.
A new official car and a utility vehicle every four years; one personal aide and provision of adequate security; a cook, chauffeurs and security guards for the governor at a sum not exceeding N5 million per month (N60 million yearly) and N2.5 million (N30 million yearly) for the deputy governor.
There is also a provision for free medical services for the governor and his spouse at an amount not exceeding N100 million for the governor per annum and N50 million for the deputy governor.
Also, there is a five-bedroom mansion in Abuja and Akwa Ibom and an allowance of 300 per cent of the annual basic salary for the deputy governor.
The ex-governor takes a furniture allowance of 300 per cent of the annual basic salary every four years, in addition to severance gratuity.
The Kano State ‘Pension Rights of Governor and Deputy Governor Law 2007’ provided for 100 per cent of annual basic salaries for ex-governors and deputies; furnished and equipped office, as well as a six-bedroom house; “well-furnished” four-bedroom for the deputy, plus an office.
The ex-governor and deputy were also entitled to free medical treatment with their immediate families within and outside Nigeria, where necessary.
Two drivers are also for former governor and a driver for his deputy, and personal staff below the rank of a Principal Administrative Officer, and a PA not below Grade Level 10.
There was a provision for a 30-day vacation within and outside Nigeria.
In Gombe, there is N300 million executive pension benefits for the ex-governor.
In Kwara, the 2010 law gives a former governor two cars and a security car, replaceable every three years, a “well-furnished five-bedroom duplex, furniture allowance of 300 per cent of his salary; five personal staff, three SSS, free medical care for the governor and the deputy, 30 per cent of salary for car maintenance, 20 per cent for utility, 10 per cent for entertainment, 10 per cent for house maintenance.
The Zamfara version of the law, signed in 2006, gave former governors pension for life, two personal staff, two vehicles replaceable every four years, two drivers, free medical for the former governors and deputies and their immediate families in Nigeria or abroad.
The law also gives the former governors a four-bedroom house in Zamfara, and an office, free telephone and 30 days paid vacation outside Nigeria.
In Sokoto, former governours and deputy governors are to receive N200 million and N180 million respectively being monetisation for other entitlements which include domestic aides, residence and vehicles renewable after every four years.
Section 2 (2) of the Sokoto State ‘Grant of Pension (governor and deputy governor) Law, 2013’ states that “the total annual pension to be paid to the governor and deputy governor shall be at a rate equivalent to the annual total salary of the incumbent governor or deputy governor of the state respectively.”
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‘We’re innocent -Ex-governors
Former Kwara governor and Senate President, Bukola Saraki (APC Kwara Central), confirmed collecting pension but said the money went into scholarship awards for indigent students.
His media aide, Yusuph Olaniyonu, said Saraki the monthly pension Saraki was being paid into a special account.
According to Olaniyonu, Saraki “directed that a special account should be opened into which the money should be paid and that it should be used for a scholarship and education programmes to be administered by a Board of Trustees.”
Plateau ex-governor, Joshua Dariye (PDP, Plateau Central), said he was ‘only’ collecting N600,000 as pension monthly from the state government.
“They are paying me N600,000 plus, but they have not paid me my severance benefit. What do you mean? Those people that retired in the army and are now senators, are they not collecting their pensions?
“Even retired civil servants that are senators are being paid their pensions. This is pension and not salary. We all know that it is illegal to collect two salaries at a time,” he told a daily.
Dariye said his pension could not stop the state government from paying teachers and other civil servants.
Ex-Kebbi governor, Adamu Aliero, said “There is nothing wrong for a former governor now serving as senator or minister to be collecting a pension. It is consistent with the pension law and absolutely nothing is wrong.”
He, however, stated that he had not been collecting his pension because “my immediate successor (Sa’idu Dakingari) did not pay me. And also, the present governor (Atiku Bagudu), is not paying me.”
Ebonyi’s former governor, Sam Egwu said he was only collecting N462,144 monthly as pension.
Egwu said: “It is a constitutional requirement that somebody who worked and retried must be given a pension. It was under my tenure that the Ebonyi Pension Law was amended, but I allowed it to be this meagre because my state is a very poor one.”
Plateau Governor, Simon Lalong, told Daily Trust that pension law was not implementable because “the former chief executives left the present administration with too much debt.
Cross-checking
Attempts to get official comments at the seat of power in Alausa last week were unfruitful.
The reporter was denied entry into the Lagos State House of Assembly by security officials.
Also at the deputy governor’s office, front desk officials stalled, claiming they were not aware of the existence of any office of the chief press secretary to the governor.
‘Popular opinion’
As a public response, stakeholders in the North-West frowned at the law granting jumbo life pension for former governors and their deputies. They told the News Agency of Nigeria (NAN), that it was ‘morally wrong.
Also, a Public Administration lecturer at the Ahmadu Bello University (ABU) Zaria, Prof. Andrew Suku, told an online media that the idea of heavy pensions was ‘unjustifiable’.
“I am a professor, my monthly salary is not up to N350,000, my pension is coming from my own contribution out of the salary,” he said.
A lawyer and human rights activist, Ibrahim Ahmed, also said that the service of four to eight years could not warrant life pension for governors and their deputies.
