Hon. Justice Emmanuel Subilim of the Abuja Judicial Division of the National Industrial Court has ordered the immediate release of the pension and death benefits of the late Deputy Superintendent of Police (DSP) Ugadogwu Uga to Mr Ifeanyi Ugadogwu, whom the court declared the sole lawful recipient and surviving administrator of the deceased’s estate.
Justice Subilim ruled that Mr Ifeanyi Ugadogwu is the only person legally entitled to receive the pension and death benefits from NPF Pensions Limited under Section 8(2) of the Pension Reform Act, 2014, and that Mr Ifeanyi Okwor, who also bore the name Ifeanyi Ugadogwu, was not the individual recorded by the deceased as his next of kin and therefore had no lawful claim to the pension and death benefits.
The court clarified that while customary law may govern the eventual distribution of a deceased person’s estate among beneficiaries, it does not determine who is entitled to receive pension benefits from a Pension Fund Administrator in the first instance.
Justice Subilim awarded ₦2 million in general damages against PenCom and ₦3 million against Mr Okwor. The court also awarded costs of ₦500,000 each against PenCom and Mr Okwor and ordered that the judgment sums attract post-judgment interest at the rate of 10 per cent per annum until fully paid.
According to the facts of the case, the claimant, Mr Ifeanyi Ugadogwu, maintained that he was the individual designated by the late DSP Uga as next of kin and that he had jointly obtained Letters of Administration over the deceased’s estate with the deceased’s biological brother, William Ugadogwu.
According to him, following William Ugadogwu’s death in 2016, he automatically became the sole surviving administrator of the estate. He told the court that he submitted all documents required for the processing of the pension and death benefits, including the Letters of Administration and other supporting records.
However, he alleged that payment was stalled after Mr Okwor emerged, claiming to be the person recorded by the deceased as next of kin. Mr Ugadogwu further argued that despite fulfilling all statutory requirements, PenCom withheld the regulatory approval necessary for payment, forcing him to engage in prolonged litigation while suffering financial hardship and emotional distress.
In their defence, NPF Pensions Limited and the other defendants argued that payment was suspended because rival claims had arisen over the identity of the deceased’s next of kin.
PenCom, for its part, contended that the Letters of Administration became problematic after the death of one of the administrators and further argued that Mr Ifeanyi Ugadogwu had not met all documentary requirements necessary for payment.
Mr Okwor denied that Mr Ifeanyi Ugadogwu was the genuine Ifeanyi Ugadogwu named by the deceased. He alleged that Mr Ifeanyi Ugadogwu’s real name was Fredrick Ifeanyi Aja and relied on customary law to argue that the deceased’s family should administer the estate.
He also filed a counterclaim seeking declarations entitling him to the pension benefits or the appointment of a receiver to utilise the funds for the construction of a permanent structure in the deceased’s honour.
Delivering judgment, Justice Subilim found that Mr Ifeanyi Ugadogwu had successfully established his identity as the individual the deceased recorded as next of kin.
Justice Subilim held that the claimant’s documentary evidence was compelling and largely unchallenged, while Mr Okwor failed to produce credible official records to support his assertions.
The court further ruled that the existing Letters of Administration remained valid and binding until revoked by a competent court and noted that no such revocation had been sought or obtained.
According to the court, where a grant of administration is issued to multiple administrators, the death of one administrator does not invalidate the grant. Instead, authority automatically vests in the surviving administrator.
Justice Subilim consequently held that Mr Ifeanyi Ugadogwu lawfully became the sole surviving administrator of the estate following the death of William Ugadogwu and did not require a fresh grant to continue administering the estate.
The court held that the Pension Reform Act (PRA) 2014 establishes a specific statutory framework for the release of pension benefits and does not recognise customary law as a basis for determining entitlement.
Consequently, the court ruled that Mr Okwor’s reliance on customary law could not override the statutory provisions of the PRA 2014, which require that pension benefits be released to the holder of valid Letters of Administration.
The court also affirmed that the Pension Reform Act requires payment of death benefits to the deceased’s personal representative and does not make entitlement dependent on customary inheritance rules or blood relationships.
While acknowledging that NPF Pensions could not release the funds without PenCom’s statutory approval, the court found that the evidence showed the claimant had submitted all required documentation and that there was no sufficient legal basis for the prolonged delay.
The court directed the National Pension Commission (PenCom) to grant unconditional approval within seven days for the release of the benefits and ordered NPF Pensions Limited to immediately compute, process and pay the entitlements upon receiving the approval.
In addition, the court restrained Mr Okwor from presenting himself as Ifeanyi Ugadogwu or taking any action capable of obstructing the payment of the benefits.
Post Title: “Customary Law Cannot Override Pension Reform Act” — Court Orders Release Of Late DSP’s Benefits, Awards ₦5m Damages By Naijaonpoint.