In Nigeria, civil servants form the backbone of government operations, and among them, auditors hold a special place. They ensure public funds are properly managed, detect fraud, and make sure government agencies follow financial rules. But after decades of dedicated service, what happens when these auditors retire? How are they taken care of? In this blog post, we’ll take an in-depth look at the pension system for civil service auditors in Nigeria, explaining how it works, what benefits they are entitled to, the challenges they face, and recent government efforts to improve the system.
Understanding the Pension System in Nigeria
Before we dive into specifics for auditors, it’s important to understand how the pension system in Nigeria works generally, especially for those in the civil service.
There are two major types of pension schemes in Nigeria:
1. The Defined Benefit Scheme (DBS)
This was the old system where the government promised to pay retirees a certain amount every month based on their final salary and years of service. Under the DBS, civil servants didn't contribute directly to their pension while in service—the government took full responsibility.
However, over time, this system became difficult to sustain. Many retirees were not paid on time or at all, and it became a burden on government finances.
2. The Contributory Pension Scheme (CPS)
Introduced by the Pension Reform Act of 2004, the CPS changed things. Under this scheme, both the employee and employer contribute to the pension. Currently, civil servants contribute 8% of their monthly salary, while the government contributes 10%. These contributions go into a Retirement Savings Account (RSA), which is managed by Pension Fund Administrators (PFAs).
This system is meant to be more sustainable and ensure that retirees have funds waiting for them when they retire.
How Civil Service Auditors Fit In
Auditors in the civil service are classified under different grade levels, ranging from junior auditors to directors and chief auditors. Their pension benefits depend on several factors, such as their grade level, number of years in service, and salary scale.
Let’s break it down based on the typical ranks:
Entry-Level Auditors (Grade Levels 08–10)
These are fresh graduates or those who just joined the service. They usually earn between ₦55,000 and ₦80,000 per month.
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Monthly Contribution (8% + 10%): ₦9,900 to ₦14,400
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After 30 Years of Service: They can expect to accumulate over ₦28 million in their RSA, assuming consistent contributions and modest investment returns by the PFA.
Mid-Level Auditors (Grade Levels 12–14)
These are experienced auditors who may supervise junior staff.
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Monthly Salary: ₦120,000 to ₦200,000
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Monthly Contribution: ₦21,600 to ₦36,000
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After 30 Years: Estimated retirement savings can exceed ₦50 million, depending on career progression and interest earned on the RSA.
Senior Auditors and Directors (Grade Levels 15–17)
These are top-level officers who may head audit departments in ministries or parastatals.
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Monthly Salary: ₦300,000 to ₦500,000
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Monthly Contribution: ₦54,000 to ₦90,000
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After 35 Years of Service: They may retire with over ₦100 million in their RSA.
These figures are approximations and depend largely on salary progression, inflation, and how well the PFA manages the retirement funds.
Other Retirement Benefits Auditors May Enjoy
Apart from the pension savings from CPS, auditors may also enjoy other benefits, depending on their ministry or agency:
1. Gratuity
Some civil servants who were under the DBS still receive gratuity—a lump sum payment at retirement. This is usually calculated based on final salary and years of service.
2. Programmed Withdrawal or Annuity
Under CPS, retirees can choose either a programmed withdrawal (where PFAs pay a fixed amount monthly) or an annuity (where a life insurance company pays the pensioner for life).
3. Health Insurance
Some retirees continue to benefit from the National Health Insurance Scheme (NHIS), though many complain about lack of access to quality healthcare under the scheme.
4. Housing or Car Benefits
Though not directly tied to pension, auditors in senior positions may benefit from staff housing schemes or official vehicles during their years of service, which can be monetized or retained at retirement.
Challenges Facing Retired Auditors
Despite the structure in place, many retired auditors face serious challenges after leaving service. These issues are not peculiar to auditors alone, but affect many civil servants in Nigeria.
1. Delayed Pension Payments
One of the biggest problems is delay in accessing pensions after retirement. Some retirees wait months or even years before receiving any payment. This is especially common with those still under the old DBS, due to poor records and bureaucracy.
2. Low Pension Amounts
Some pensioners, especially those who retired from lower ranks, earn as little as ₦2,000 to ₦5,000 monthly as pension. This amount is clearly not enough in today’s economic reality. In a 2023 report, some retired level 12 officers complained of receiving just ₦2,000 monthly!
3. Pension Not Reviewed Regularly
The Nigerian Constitution says that pensions should be reviewed every five years or whenever salaries are reviewed. Unfortunately, this is hardly done. So while civil servants still working enjoy new salary increases, retirees are left behind.
4. Lack of Proper Record Keeping
Some retirees are not paid at all because their service records are missing or not properly documented. Errors in name, date of birth, or service number can delay pension payments indefinitely.
Recent Government Efforts to Improve Pensions
Despite the challenges, there have been some recent moves by the Federal Government and state governments to improve the pension system:
1. Adjustments to Reflect New Minimum Wage
In response to calls from pensioners, the Federal Government recently approved adjustments to pensions under the old DBS to reflect the new national minimum wage. This move was aimed at easing the hardship faced by retired workers.
2. Efforts to Clear Backlogs
Agencies like the Pension Transitional Arrangement Directorate (PTAD) have been working to verify records and clear backlogs of unpaid pensions. Many civil service retirees have been paid their long-awaited gratuities in recent years.
3. Harmonization of Retirement Age
Some stakeholders are pushing for a uniform retirement age across all civil services. While judges and university professors retire at 70, many civil servants retire at 60 or after 35 years of service. Some have proposed 65 years or 40 years of service for all.
4. IPPIS and Salary-for-Life Arrangement
Interestingly, some senior officials such as permanent secretaries and heads of service are exempted from CPS and continue to receive their full salary for life under IPPIS. This has caused debate about fairness and equity within the public service.
Summary Table: Civil Service Auditors’ Pension Breakdown
| Grade Level | Monthly Salary (₦) | Monthly Pension Contribution (₦) | Estimated RSA Accumulation After 30–35 Years (₦) |
|---|---|---|---|
| 08–10 (Entry) | 55,000 – 80,000 | 9,900 – 14,400 | ₦28 million+ |
| 12–14 (Mid) | 120,000 – 200,000 | 21,600 – 36,000 | ₦50 million+ |
| 15–17 (Senior) | 300,000 – 500,000 | 54,000 – 90,000 | ₦100 million+ |
Conclusion
Auditors are key to maintaining transparency and accountability in Nigeria’s public sector. After years of dedicated service, they deserve a pension system that works—one that pays them on time, gives them a decent income, and recognizes their contribution.
While the contributory pension scheme is a step in the right direction, challenges like delayed payments, low pension values, and lack of periodic reviews still need to be addressed. Government must do more to ensure that every auditor, whether junior or senior, lives in dignity after retirement.
A society that fails to care for its retired civil servants is a society that discourages honesty and hard work. It’s time for real reforms, and auditors—just like all civil servants—deserve better.
