Chief Executive of the Pension Fund Operators Association of Nigeria, Oguche Aguda, has defended the Contributory Pension Scheme (CPS), saying it remains transparent and reliable even as growing anger erupts among retired police officers over what they describe as disgracefully low payouts.

Aguda in an interview with ARISE NEWS said that the backlash is rooted more in poor police remuneration than in pension mismanagement. “Your pension is a function of your salary,” he explained. “If your salary is low, your pension will reflect that whether you’re under CPS or a defined benefits scheme.”

Addressing claims that the military receives better treatment, Aguda clarified, “The military earns more, so naturally their pensions are higher. That’s not injustice, it’s arithmetic.”

He further highlighted that the CPS is fully funded and structured to ensure retirees receive their money consistently. “No one under the scheme has said they didn’t receive their pension. The challenge is that the amount may be small and that’s a problem of salary, not the pension system itself.”

Aguda also urged for reforms to improve pension literacy and suggested that security agencies like the police should emulate organisations such as the CBN and FIRS, which use internally generated funds to supplement their employees’ retirement packages.

His remarks come amid a wave of criticism after a viral video showed a retired Superintendent of Police rejecting a N3 million gratuity. The officer, who served for 35 years before retiring in October 2023, called the sum “an insult” and questioned how such a payout could be deemed fair compensation.

“I cannot serve this country for 35 years and be paid two million Naira,” he said in the video. “The devil is a liar.”

Another retiree, Assistant Superintendent Vesas Ogbebo, described the same payment as “shameful and unacceptable,” echoing what many in the police force now see as long-standing neglect.

Beyond the low amounts, some retirees have also complained about delays and bureaucratic bottlenecks in accessing their funds. Civil society groups have joined in, demanding an investigation into the CPS and calling for parity between police and military pension arrangements.

A nationwide protest is reportedly being planned by affected officers for July 21. But Aguda cautioned against abandoning the CPS in favour of the opaque and corruption-prone defined benefits scheme. “We’ve made real progress,” he said. “What we need now is not to scrap the system, but to improve salaries, deepen pension education, and strengthen the support structure for our retirees.”

Erizia Rubyjeana

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