In a financial saga steeped in history and dispute, Stanbic IBTC Pension Managers find themselves at the center of a controversy involving the pensions of NOLCHEM (Conoil ) pensioners—a sum exceeding N250 million. This contentious issue traces its roots back to the year 2000, during former President Olusegun Obasanjo's tenure, when the government divested 60% of its shares in the National Oil & Chemical Marketing Company Limited (NOLCHEM) to Conpetro, marking the transition to what is now known as CONOIL PLC.

This shift necessitated the comprehensive management of the company's Pension Fund to ensure that all existing pensioners and workers who opted to leave CONOIL were duly compensated. A supplementary Trust Deed was executed between CONOIL and the Trustee of the Pension Fund to amend the lump sum payment and commutation of pension provisions. An oversight in this amendment would later seed discord.

The inception of the Pension Fund dates back to January 1, 1952, under the Shell Company of West Africa Limited (later the Shell Company of Nigeria Limited). It was a non-contributory fund, solely sustained by the Shell Company of Nigeria and augmented through investment dividends and interest, ceasing payments upon a retiree's death.

The narrative took a significant turn in 1975, under the indigenization decree of the Muritala/Obasanjo administration, transitioning the Shell Company of Nigeria Limited to NOLCHEM. The establishment of a pension fund for its staff and employees under NOLCHEM Provident Trust Limited in 1976 seemed to pave a straightforward path until 2009 when Conoil and the Trustee clashed over the fund's compliance with the Federal Government's pension harmonization policies or its liquidation to compensate EXISTING Pensioners. Conoil's decision to purchase the fund outright to settle existing pensioners led to a valuation dispute, eventually arbitrated by the Lagos High Court Multi-Door Court House.

Conoil's agreement to pay N1,063,964,699.50 as a final settlement to the pensioners marked a resolution, with the funds meant to be managed and distributed by Stanbic IBTC Pension Managers appointed by the pensioners. Despite efforts to rectify membership inaccuracies, discrepancies involving deceased members' inclusion in the final list presented to Stanbic IBTC Pension Managers led to an impasse.

The heart of the controversy lies in the refusal of Stanbic IBTC Pension Managers to remit the remaining funds to the pensioners' account, as per their request, citing the Pension Reform Act. This decision flies in the face of the original trust deed's provisions. It has trapped over N250 million since 2012, leading to an ongoing tussle between the pensioners and Stanbic IBTC over the rightful distribution of these funds.

This saga poses pressing questions about the fiduciary responsibilities of pension fund administrators and the ethical considerations of managing non-contributory pension funds, especially in cases where the fund's governing documents contradict prevailing legal frameworks.
As the dispute unfolds, the core issue remains: Can Stanbic IBTC Pension Managers dictate the distribution of pension funds against the explicit wishes of the pensioners and the stipulations of the original trust deed? The resolution to this question will impact the pensioners involved and may set a precedent for managing pension funds across Nigeria.

Jeremiah Jibola Oluti
Financial Secretary
Nigeria Union of Pensioners
NOLCHEM(Conoil) Branch.