No Worker Earns N3m Monthly –PenCom

The National Pension Commission (PenCom) yesterday refuted reports in the traditional and social media, stating that the least paid employee earns up to N3 million monthly.

The Commission, in a statement, described the report, which emanated from the defence of its 2023 Medium Term Expenditure Framework (MTEF) at the House of Representatives, as totally misleading and unfair.

“The public is invited to note that the claim is absolutely false. The highest paid official of the Commission earns less than ₦1 million a month. It is, therefore, completely illogical and improbable that the least paid will earn a monthly salary of ₦3 million,” the statement noted.

The Commission added that there was an element of mischief and possible blackmail on the Commission’s compensation package.

“From our understanding, it appears someone calculated all staff costs, including training, staff exit benefit scheme, and employer’s pension contribution, and divided the total by the number of the Commission’s employees and concluded that the least paid employee is on a monthly salary of ₦3 million. There is a clear difference between staff cost and staff salaries.  

“It is imperative to point out that right from the inception of the Commission in 2004, the Federal Government mandated the Board to adopt an employee compensation policy that favourably compares to comparator government bodies in the financial services sector, such as the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) and the Securities and Exchange Commission (SEC). Section 25(2)(b) of the Pension Reform Act 2014 also empowers the Board of the Commission to fix the remuneration, allowances and benefits of the employees.

“Moreover, the Presidential Committee on the Consolidation of Emoluments in the Public Sector headed by the late Chief Ernest Shonekan, former Head of the Interim National Government, made a number of recommendations which guide the PenCom Board in its compensation review exercises.

One of the recommendations is that the pay structure of self-funded agencies should be benchmarked with their private sector comparators so as to ensure relativity in such agencies and attract and retain high-caliber professionals.

“The Shonekan Committee, which was set up by former President Olusegun Obasanjo in 2005, also recommended that the pay structure of regulatory agencies should be benchmarked against sectors they monitor to avoid regulatory capture, and that an annual increase in pay should be undertaken to account for inflation/cost of living adjustment and establishments may strive to attain 50th percentile and above their comparators in the private sector,” it further explained.

PenCom added that the aforementioned explanation on its compensation package was also given to the House of Representatives Committee on Finance.

“We also stated that the last compensation package review was done in 2017 with the approval of the Office of the Secretary to the Government of the Federation (OSGF). No review has been done in the last five years and this has affected the ability of the Commission to attract, hire and retain staff with competitive skills,” it noted.