Retired Police Officers Challenge PenOp's N7 Trillion CPS Exit Burden Claim
Retired police officers participating in the Contributory Pension Scheme (CPS) have strongly contested assertions made by the Pension Fund Operators Association of Nigeria (PenOp) regarding the financial implications of the Nigeria Police Force exiting the scheme. In a statement released on January 21, 2026, and endorsed by the National Coordinator, SP Christopher Effiong (retired), along with other senior retired officers, the group labeled PenOp's claim as "baseless and misleading."
Disputing the Fiscal Burden Argument
PenOp had reportedly cautioned in an interview published by Daily Trust on January 15, 2026, that withdrawing the police from the CPS could impose a significant annual fiscal burden of N7 trillion on the Federal Government. However, the retirees have demanded that PenOp publicly validate this figure with verifiable macroeconomic data. They emphasized that police retirement benefits should not be framed as a threat to Nigeria's fiscal stability, arguing that fiscal and monetary policies fall under the purview of the Ministry of Finance and the Central Bank of Nigeria.
Questioning Pension Fund Operators' Influence
The retired officers expressed concern over what they perceive as the growing influence of pension fund operators in shaping national pension discourse. They contended that the CPS is ill-suited to the realities of policing, citing the profession's inherent risks, such as exposure to violence, injury, and psychological trauma. Presenting the issue solely as a N7 trillion fiscal burden, they argued, overlooks the broader economic costs of insecurity to the nation.
"Security is an investment, not an expense," the retirees stated, highlighting that inadequate police welfare contributes to low morale, corruption, and inefficiency, which have far-reaching economic consequences.
Advocating for Police Pension Autonomy
The group dismissed claims of a lack of consensus within the police force on exiting the CPS, asserting that both serving and retired personnel support a complete withdrawal. They described the continued inclusion of the police in the CPS as discriminatory, noting that other entities, such as the military, intelligence agencies, National Assembly workers, and some states, operate pension systems outside the CPS framework.
Referencing international examples, including Chile, where police institutions are reportedly excluded from contributory pension arrangements, the retirees urged Nigeria to adopt a similar model to ensure fairness and efficiency.
Concerns Over Pension Fund Management
Raising issues about pension fund management, the retirees pointed to a presentation allegedly given by PenOp's CEO at a pension seminar in Lagos in January 2024, which highlighted investments exceeding N308 billion in corporate debt instruments. They claimed that the returns on these investments have not been adequately reflected in the pensions of retired police officers, further justifying their call for a separate pension system.
Demands for Reform and Equity
The group reiterated its demand for the Nigeria Police Force to exit the CPS entirely and for the establishment of a Police Pension Board to manage gratuities and pensions. They warned that retaining the police in the CPS while exempting other security agencies is inconsistent with policy, urging the Federal Government to prioritize equity, dignity, and national security in pension reforms.
The statement was also signed by ACP Bright Kakada (retired), DSP Elder Ofem O. Mbang (retired), ASP El-Nathan Jareh, and 21 other retired officers, underscoring the collective stance on this critical issue.
