Facts have emerged that the desperate need to borrow N250bn from the capital market is behind Lagos State Governor's Mr Babajide Olushola Sanwo-Olu announced intention, to send an amended bill to the Lagos State House of Assembly, to repeal the state's former governors and deputy governors pension act.

The proposed amendment to the law passed in the twilight of the then Bola Tinubu administration in 2007, will bring about the cancellation of pension payments to Messers Bola Tinubu, Tunde Fashola and Akinwunmi Ambode and a host of others former helmsmen and deputies in the state, was not born out of patriotic measure as the handlers of the administration is projecting.

What Sanwoolu hid and cannot tell Lagosians are the body of realities and real truths behind the proposed cancellation of the thirteen year old former Governors’ pension act of Lagos State, he had to present it like an altruistic action.

THE FACTS

In Nigeria Ex-Governors are being paid humongous pension packages, after their tenures in office, by a lot of States, not only Lagos State as many had assumed. Rivers and Akwa Ibom States package for former governors and deputies outweighs that of Lagos State.

In Nigeria the Pension Reform Act of 2004 changed Nigerian Pension system from Defined Benefits to Defined Contributions. This means that private and public sector workers can only be paid pensions from the funds they contributed while in active pensionable work.

The salaries of Governors and their deputies are not subjected to pension deductions, their own pensions can only be fixed by the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC). This means that Lagos State is one of the states using tax payers money to make this illegal pension payment to non-contributing ex-governors/deputies.

LAGOS TURNING POINT

When Lagos State wanted to issue Bonds to raise N100billion from the Capital Market in January of 2020, the Nigeria Pension Commission disqualified the Bond from accessing pension monies in custody of the PFAs.

Lagos Government had to sign an undertaking to correct the illegal pension payment provisions in its pension law before the disqualification was lifted.

Lagos was then able to borrow N100 billion in January of 2020 to spend on projects yet to be properly accounted for.

LEGAL PRECEDENTS

It will be recalled that Justice Oluremi Oguntoyinbo of the Federal High Court, in a suit filed by SERAP in 2017, in judgement delivered December of 2019 ordered that the Attorney General of the Federation to challenge the legality of the pension payments to ex-governors and their deputies nationwide.

The National Industrial Court in January 2020, also declared as null and void, payment of pension and gratuity to former governors and their deputies. This is the position of the law as of now, in the absence of any Appeal Court order setting it aside.

LAGOS NEW DEBT BID

Lagos State intends to borrow additional N150bn from the Capital Market again, but it must cancel the illegal payments to governors/deputies by revoking Ex Governors Pension Law in order for PENCOM to qualify it's new borrowing for PFAs' investments.

Sanwoolu’s decision to cancel the ex- Governors pension law is not altruistic and should not be applauded. The decision to cancel the illegal pension is by compulsion and not by choice.

LAGOSIANS VIEWS

Antonio Oladeinde Ipesa Director Civil Watch Institute said civil society and other stakeholders groups must monitor the present Lagos State Government to ensure, the administration does not continue to pay these monies to the ex-Governors through the back door, when the law is repealed.

In his words "Lagos State government has a knack for secrecy and under the table positions in her dealings, aside these Lagos State government cannot continue to retain the services of Alpha Beta Consulting and expect people of good faith and regulatory institutions to take this state serious. How can such a nebulous tax consultant be allowed to operate alongside the statutory Lagos Inland Revenue Service.

"The none domestication of the Freedom of Information Bill in Lagos State has made process of government business monitoring opaque and only the desperate need for loan is making Lagos State open her books and repeal her obnoxious laws"

Elizabeth Oyerinde Peters a school administrator in her submission said the Lagos State government is being run as a private estate and not a public entity.

"In Lagos State contracts award process do not follow federal standard, aside fictitious contract awards, public job contracts are means of political patronages to leaders of the ruling party in the state and their cronies.

"If it takes stoppage of unbridled debt quest for federal regulators and agencies to check the state from being run as a private estate and not a sub sovereign so be it" Mrs Oyerinde submit.

Bye bye to tinubu coins cashout remain d note cashout

Yet another aftermath of The the just concluded protest. This is why politicians are not happy trust. Because pockets will be affected in one way or the other

Whatever be the reason it's a welcome development!

Just be sure these criminals will still look for a way to get that pension by hook or crook

Tinubu & cohorts had longly been milking Lagos & I think sanwo olu is trying to save it from being milked dry. If this isn’t a political gimmicks, then it’s a welcome development

There is no secret that will not be revealed under the sun.
Of course well discerning Nigerians know that Sanwo-Olu
cant just wake up suddenly & be contemplating this issue without something fishy.

Too much looting by one thief from Iragbiji has made Lagos the debt capital of Nigeria. he has milked Lagos dry. I think it is high time that we the Yoruba youths wakes up to our responsibility by challenging this man to return all the loot. if he fails then we will know what to do

A disturbing pattern. This is why I want FG to force all entities getting funds from it to mandate them to open their books. If you depend on me for money in form of allocation, then show me how you are spending the money.