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The Federal Government has refuted the news that it's planning to borrow the N20 trillion pension fund for infrastructures development.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated in Abuja that the government would adhere to the established rules and regulations governing the pension fund.
Earlier, the minister had indicated to journalists, following a two-day Federal Executive Council meeting at the Presidential Villa on Tuesday, that the government would present a strategy to utilize local funds, including the pension fund, for financing infrastructure development.
However, in a statement in Abuja on Thursday, Edun emphasized that the pension industry, like other sectors in the financial industry, is subject to strict regulation by specific legal frameworks.
The Federal Government assured that it has no intention of surpassing legal limits and is dedicated to safeguarding workers' pensions.
Rumors have been circulating about the government unlawfully accessing workers' savings and pension contributions, but these claims are false.
"The pension industry, much like other financial sectors, is subject to extensive regulation with specific rules and limitations on investment options.
The Federal Government has no plans to exceed these boundaries, which are in place to protect workers' pensions.
A collaborative effort is underway to explore how these funds can be used within the existing regulations to drive investment in key growth areas. It is emphasized that the government does not intend to increase the risk or compromise the security of pension funds.
The Nigeria Labour Congress and the Trade Union Congress of Nigeria have urged the government to refrain from using the pension fund for infrastructure development, citing the need to safeguard workers' retirement savings and expressing concerns about transparency and accountability in past government borrowing practices."
The labor unions demanded guarantees from the government that workers' retirement funds would not be used for further Federal Government borrowing, especially since the PENCOM Board has not been constituted as required by the law.
They argued that any plan to borrow the funds is not supported by the Pension Act. The unions expressed disappointment that despite the government's assurances of extensive consultation with major stakeholders in the pension industry, the NLC and TUC, representing the contributors of the entire pension fund, had not been consulted or informed about the government's intentions.
They stated that the lack of transparency undermines the integrity of pension funds, which should always be treated with the highest respect and protection.
Similarly, Bunmi Ogunkolade, the Head of Information for the Nigerian Union of Pensioners, urged the government to find an alternative source to fund its infrastructure development plan, emphasizing that the pension fund belongs to workers, not pensioners.
He opposed the government's plans and appealed for them to seek funding elsewhere. Additionally, the Nigeria Union of Pension in Kaduna State advised the Federal Government against using the money for infrastructure development.
