FG Proposes 53% Hike in 2025 Military Pensions to Address Retirees’ Demands

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The Federal Government has proposed a 53% increase in the 2025 budget allocation for military retirees, raising the total allocation from N221.66 billion in 2024 to N338.90 billion. This move follows a series of protests by retired military personnel demanding the payment of unpaid entitlements and adjustments to their pensions.

The proposed allocation includes N230.32 billion for military pensions, N66.85 billion for expected retirees, N38.15 billion for death benefits, and an unchanged N3.57 billion for the National Health Insurance Scheme (NHIS). In comparison, the 2024 budget allocated N166.53 billion for military pensions, N29.49 billion for expected retirees, and N22.07 billion for death benefits, alongside the same NHIS allocation.

The increase comes in response to escalating protests by retired military personnel, who have staged repeated demonstrations at the Ministry of Finance in Abuja. The retirees, under the umbrella of the Coalition of Military Pensioners, demanded the payment of outstanding entitlements, including:

• Non-payment of a 20-28% salary increment from January to November 2024.

• Arrears of palliatives covering October 2023 to November 2024.

• Bulk payment of the Security Debarment Allowance.

• Refund of pension deductions from medically boarded soldiers.

• An additional N32,000 monthly increment in pensions.

On December 5, 2024, the protesters shut down operations at the Ministry of Finance by blocking the entrance with canopies and chairs. Although the government paid 50% of the owed entitlements, it failed to deliver the remaining amount, prompting another protest on January 7, 2025.

During the January protest, retired military personnel began receiving payment alerts while still demonstrating at the Ministry of Finance. Air Vice Marshal Paul Irumheson, Chairman of the Military Pension Board, addressed the retirees, confirming that funds had been transferred for their entitlements.

“We have received the money for the payment of your entitlements, and in the next few minutes, you will start seeing your alerts,” he said, urging the protesters to disperse.

Chief Aliyu Umar, a veteran leader, expressed relief but criticized the government for requiring protests before fulfilling promises. “They said there was no money—so where did this come from? Do we always have to protest before receiving our entitlements?” he asked.

The recurring protests have brought attention to allegations of financial mismanagement within the Military Pensions Board. In December 2023, the Senate Committee on Appropriation announced plans to investigate the board over irregularities in its operations. During the budget defense session, the committee questioned the board’s requests, including a N20 billion fund for office construction and federal secretariat renovations.

The proposed increase in military pensions reflects broader reforms in the 2025 budget, including allocations for pension arrears and adjustments to the minimum wage. Key figures include:

N20.99 billion for pension increment arrears (January-December 2024).

N221.54 billion for the Pension Protection Fund.

N387.54 billion for arrears of the 33% pension rate increase.

N30.79 billion for civilian pensions.

While the proposed budget signals a commitment to addressing retirees’ grievances, the government faces challenges in implementing these allocations efficiently and transparently. Retired service members and the public continue to demand accountability and timely action to prevent future unrest.

With the increase in budget allocations, military retirees hope for a resolution to the financial hardships they have endured after years of service to the nation.

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