Reps to Investigate Lavish Severance Packages for Political Appointees
The House of Representatives Committee on Public Accounts has raised concerns over the approval process for severance packages granted to political appointees in various Ministries, Departments, and Agencies (MDAs).
The committee, chaired by Bamidele Salam (PDP, Osun), has set up a five-man subcommittee to conduct a thorough investigation and propose recommendations.
Speaking during an inquiry with the Securities and Exchange Commission (SEC), Salam expressed worries that some agency boards wield excessive power, arbitrarily approving massive payouts to their appointees.
Are Government Appointees Getting Paid Too Much?
Salam questioned the fairness of these severance payments, especially compared to individuals who dedicate decades of service, including those who risk their lives in war zones.
“If we are paying such amounts to executive commissioners who served only four years, how do we justify compensation for individuals who have served this country for 35 years?” he asked.
With Nigeria facing economic challenges, the lawmaker stressed the urgent need for fiscal discipline in government spending.
SEC Defends Its Severance Payments
In response, SEC Director-General Dr. Emomotimi Agama defended the payments, stating that severance allowances were duly approved by the board for executive commissioners who served between 2013 and 2017.
He also noted that SEC follows both defined benefit and contributory pension schemes, managed by three Pension Fund Administrators (Sigma, Premium Pension, and Stanbic IBTC).
Agama added that SEC opted to pay management fees to these pension administrators to prevent future deficits.
Questionable Payments Raise Red Flags
Despite SEC’s explanation, the Office of the Auditor-General for the Federation (OAuGF) flagged suspicious payments, including:
₦128,869,606.22 paid to an individual on January 5, 2017.
₦128,556,888.58 paid to another individual on the same day.
₦93,380,888.38 allegedly paid illegally from gross pension fund investments.
With such large sums in question, the Reps Committee may push for amendments to existing laws governing severance payments in government agencies.
What’s Next?
The probe could reshape how political appointees are compensated, ensuring that government funds are used responsibly. Will the committee enforce stricter regulations, or will these extravagant payouts continue?
Stay tuned to NIGPOST for the latest updates on this developing story.
👉 What’s your take on this? Should the government cut down on severance packages? Drop your thoughts in the comments!
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