Fact check: PenCom did not spend N9bn on salaries in 2019
Aclaim that the National Pension Commission (PenCom) spent N9bn on salaries of 385 staff members from the Commission’s N12.28 billion in 2019 found its way into the media.
A national newspaper (not Daily Trust) reported that the joint Senate and House of Representatives Committees on Pensions demanded from PenCom the “details of the 386 staff members who collected about N9bn salaries, estimated at an average of N2m monthly per staff member.”
Daily Trust set out to verify the claim and found that it is not only false, but totally misleading.
Verification
Documents seen by Daily Trust showed that it is true that PenCom internally generated N12.28 billion from January 1, 2019 to August 31, 2019.
A breakdown shows that the Commission generated N4.09 billion, N4.97 billion and N3.22 billion as IGRs in the first, second and third quarters of 2019 respectively. Third quarter’s value was as at the end of August.
The documents showed that out of the N12.2 billion generated within the period, the Commission spent N5.92 billion on personnel cost, N2.29 billion on overhead cost and N58.89 million on capital expenditure.
On personnel cost, it was also found that N5.92 billion was not all expended on salaries as breakdown showed that N5.22 billion was for staff salaries and N701.25 million was spent on allowances.
Details show that the commission is yet to spend about N4.08 billion from the IGRs generated within the period and the fund is considered as “surplus” if not spent as budgeted by the end of the year.
As a non-treasury funded agency of the Federal Government, PenCom funds its operations and staff remunerations from IGRs.
A check on the number of staff who earned the salaries during the period also faulted the claim that “386 members of staff earned an average of N2 million monthly.”
Records seen by Daily Trust showed that as at January 1, 2019, PenCom’s staff strength was 402 workers and not 386 workers as claimed.
However, due to retirements, resignations and disengagement of some staff members, the Commission’s staff strength dropped to 386 as at October, 2019.
Conclusion
It is false that 386 staff members on PenCom’s payroll collected about N9bn as salaries in eight months. It is also false and misleading that each member of staff earned an average of N2 million monthly. Findings showed that the total population of the Commission’s staff hovered around 402 and 386 within the period and a total of N5.22 billion was paid as salaries.