Customary Law Cannot Override Pension Act, Court Rules; Orders Release of Late DSP’s Benefits

The National Industrial Court of Nigeria has ordered the release of the pension and death benefits of late Deputy Superintendent of Police (DSP) Ugadogwu Uga to Ifeanyi Ugadogwu, whom it declared the sole lawful recipient and surviving administrator of the deceased’s estate.

Justice Emmanuel Subilim, sitting at the Abuja Judicial Division, held that customary law could not override the provisions of the Pension Reform Act, 2014, in determining who was entitled to receive the deceased officer’s pension benefits.

The court ruled that Ifeanyi Ugadogwu was the person recorded by the late officer as his next of kin, while another claimant, Ifeanyi Okwor, had no legal basis to claim the benefits.

The claimant had told the court that he was named as next of kin by the deceased and had jointly obtained Letters of Administration over the estate with the officer’s brother, William Ugadogwu.

Following William’s death in 2016, he said he became the sole surviving administrator of the estate and submitted the required documents to process the pension and death benefits.

However, payment was delayed after Okwor emerged with a competing claim to the benefits. The claimant alleged that the National Pension Commission (PenCom) withheld the regulatory approval required for the payment despite his compliance with the statutory requirements.

PenCom and NPF Pensions Limited argued that payment had been suspended because of the competing claims and questions surrounding the documentation.

Okwor, who relied on customary law, disputed the claimant’s identity and sought to be recognised as entitled to the benefits. He also asked the court to appoint a receiver to use the funds for a structure in honour of the deceased.

Delivering judgment, Justice Subilim found that the claimant had established his identity through documentary evidence, which the court described as compelling and largely unchallenged.

The judge held that the Letters of Administration remained valid because no competent court had revoked them. He further ruled that the death of one of the administrators did not invalidate the grant, but left the surviving administrator with authority over the estate.

The court said the Pension Reform Act provides a statutory framework for the payment of death benefits to a deceased person’s personal representative, and that customary inheritance rules could not displace that framework.

It consequently directed PenCom to grant unconditional approval for the release of the benefits within seven days, while NPF Pensions Limited was ordered to compute, process and pay the entitlements immediately after receiving the approval.

The court also awarded N2 million in general damages against PenCom and N3 million against Okwor. It ordered each of them to pay N500,000 in costs, with the judgment sums attracting 10 per cent annual interest until fully paid.

Okwor was further restrained from presenting himself as Ifeanyi Ugadogwu or taking any action capable of obstructing the payment of the benefits.