The Federal Government has firmly denied allegations of planning to borrow the N20 trillion pension fund for infrastructure development, reaffirming its commitment to adhering to established rules and regulations governing pension funds.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, in a statement from Abuja, emphasized that the government would comply with the stringent legal frameworks regulating the pension industry. This statement came after reports surfaced suggesting the government intended to use pension funds to finance infrastructure projects.
Following a two-day Federal Executive Council meeting at the Presidential Villa, Minister Edun had mentioned a strategy to mobilize local funds, including pension funds, to boost infrastructure development. However, on Thursday, Edun clarified that any such initiatives would strictly respect existing legal limits.
“It has come to my notice that stories are making the rounds that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth,” Edun stated. “The pension industry, like most financial sectors, is highly regulated. There are rules and limitations about what pension money can be invested in and what it cannot be invested in. The Federal Government has no intention whatsoever to go beyond those limitations.”
The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) have voiced strong opposition to any plans to borrow from the pension fund, urging the government to avoid jeopardizing workers’ retirement savings. NLC President Joe Ajaero and TUC Deputy President Tommy Okon underscored the lack of transparency in past government borrowing practices and demanded assurances that workers’ retirement funds would remain untouched.
“Nigerian workers have entrusted their hard-earned savings for retirement security, not as a means for government projects,” the unions stated. “It is imperative to halt any further plans to tap into these funds, especially given the lack of transparency and accountability in past government borrowing practices.”
Echoing these concerns, the Nigerian Union of Pensioners and its regional branches have also called on the government to seek alternative funding sources. Bunmi Ogunkolade, Head of Information for the Nigerian Union of Pensioners, stressed that the pension fund belongs to workers and should not be diverted for infrastructure projects.
Similarly, the Nigeria Union of Pensioners in Kaduna and Ogun States voiced their disapproval. Mallam Alhassan Balarabe Musa from Kaduna noted a failed attempt under former President Muhammadu Buhari to access pension funds, while Dr. Bola Lawal from Ogun warned against the risk and impracticality of the government’s proposal.
The unions and pensioners remain united in their stance that pension funds should remain secure and exclusively for the benefit of retirees, urging the government to explore other avenues for financing its infrastructure initiatives.
