Industrial Court Rules Customary Law Cannot Override Pension Act, Orders Release of Late Police Officer’s Benefits to Sole Lawful Recipient
The National Industrial Court of Nigeria has held that customary law cannot override the provisions of the Pension Reform Act, 2014, in determining who is legally entitled to receive the pension and death benefits of a deceased employee. The court consequently declared Mr Ifeanyi Ugadogwu the sole lawful recipient and surviving administrator entitled to receive the pension and death benefits of the late Deputy Superintendent of Police (DSP), Ugadogwu Uga.
Delivering judgment at the Abuja Judicial Division, Hon. Justice Emmanuel Subilim ordered the National Pension Commission (PenCom) to grant unconditional approval within seven days for the release of the benefits. The court also directed NPF Pensions Limited to immediately compute, process and pay the entitlements upon receiving the regulatory approval. It held that under Section 8(2) of the Pension Reform Act, 2014, Mr Ugadogwu was the individual legally entitled to receive the benefits, while Mr Ifeanyi Okwor, who also claimed the name Ifeanyi Ugadogwu, had no lawful claim because he was not the person recorded by the deceased as his next of kin.
The court clarified that although customary law may apply to the eventual distribution of a deceased person’s estate among beneficiaries, it cannot determine who is entitled to receive pension benefits from a Pension Fund Administrator in the first instance. Justice Subilim held that the Pension Reform Act provides a specific statutory framework for the payment of death benefits and does not recognise customary inheritance rules as a basis for determining the person entitled to receive the funds.
The dispute arose after Mr Ifeanyi Ugadogwu maintained that the late DSP Uga had designated him as his next of kin. He also told the court that he had obtained Letters of Administration over the deceased’s estate jointly with the deceased’s biological brother, William Ugadogwu. Following William’s death in 2016, the claimant argued that he automatically became the sole surviving administrator of the estate and remained legally authorised to administer it.
According to the claimant, he had submitted the necessary documents for the processing and payment of the pension and death benefits, including the Letters of Administration and other supporting records. However, payment was allegedly delayed after Mr Okwor emerged and claimed that he was the person recorded by the deceased as next of kin. The claimant further alleged that PenCom withheld the regulatory approval required for payment despite his compliance with the applicable requirements, resulting in prolonged litigation, financial hardship and emotional distress.
In their defence, NPF Pensions Limited and the other defendants maintained that payment had been suspended because competing claims had arisen over the identity of the deceased’s next of kin. PenCom argued that the death of one of the administrators had raised questions about the validity of the Letters of Administration and further contended that the claimant had not fulfilled all the documentary requirements for payment.
Mr Okwor, on his part, disputed the claimant’s identity, alleging that his real name was Fredrick Ifeanyi Aja and that he was not the Ifeanyi Ugadogwu named by the deceased. He also relied on customary law to argue that the deceased’s family should administer the estate. In a counterclaim, he sought a declaration entitling him to the pension benefits or, alternatively, the appointment of a receiver to use the funds for the construction of a permanent structure in honour of the deceased.
However, Justice Subilim found that the claimant had successfully established his identity as the person designated by the deceased as next of kin. The court described his documentary evidence as compelling and largely unchallenged, while finding that Mr Okwor had failed to produce credible official records to support his allegations.
The court also rejected the argument that the death of one of the joint administrators had invalidated the Letters of Administration. It held that the grant remained valid and binding until revoked by a competent court, noting that no application for its revocation had been made or granted. According to the court, where Letters of Administration are issued to more than one administrator, the death of one does not invalidate the grant, as the authority to administer the estate continues with the surviving administrator.
Justice Subilim therefore held that Mr Ifeanyi Ugadogwu lawfully became the sole surviving administrator following William Ugadogwu’s death and was not required to obtain a fresh grant before continuing with the administration of the estate.
On the application of the Pension Reform Act, the court held that entitlement to receive the death benefits is governed by the statutory provisions of the Act and is not determined by customary inheritance rules or blood relationships. It further observed that although NPF Pensions could not release the funds without the necessary approval from PenCom, the evidence established that the claimant had submitted the required documents and that there was no sufficient legal justification for the prolonged delay in processing the payment.
In addition to the orders directing the release of the benefits, the court awarded ₦2 million in general damages against PenCom and ₦3 million against Mr Okwor. It also awarded costs of ₦500,000 against each of them, with the judgment sums attracting post-judgment interest at 10 per cent per annum until fully paid.
The court further restrained Mr Okwor from presenting himself as Ifeanyi Ugadogwu or taking any action capable of obstructing the payment of the pension and death benefits to the lawful recipient.
