The Nigeria Governors’ Forum (NGF) claims that after the fuel subsidy is removed in 2022, states will clear their outstanding pension commitments.

This was stated by the governors’ forum at its 36th teleconference meeting on Wednesday.

By 2022, the federal government plans to phase down fuel subsidy and replace them with a monthly transportation stipend of N5000 for the poorest Nigerians.

The governors have resolved to include fulfillment of all outstanding pension liabilities as part of the social compact with citizens for the withdrawal of fuel subsidy, according to Kayode Fayemi, chairman of the NGF and governor of Ekiti, in a statement released after the meeting.

Governors’ support for the federal government’s transportation palliative strategy was also reaffirmed by Fayemi.

“On the strategy to build a sustainable Contributory Pension Scheme (CPS) for State Governments that will also be capable of clearing outstanding pension liabilities, members listened to a presentation by the Chief Executive of AVA Capital, Mr Kayode Falasinnu, and resolved that the settlement of all outstanding pension obligations should be included as part of the social compact with citizens for the removal of fuel subsidies,” the communique reads.

“With respect to the required legal and institutional changes required to facilitate a successful CPS transition in all States, State Commissioners of Finance will be mandated to ensure that States meet the guidelines for the implementation of Contributory Pension Schemes by State Governments, including the enactment of a pension law, the establishment of a pension board and the adoption of a transition framework for each State.”

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