Would you like to receive notifications on latest updates of the following headlines?

FG Refutes plan to Borrow N20trn Pension Fund, Assures Safety

POSTED ON June 7, 2024 •   BUSINESS      BY Abiodun Saheed Omodara
Minister of Finance and Coordinating Minister of the Economy, Wale Edun l Credit:The cable

 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.

 

READ ALSO
Nigeria Should Aim for 60,000 Megawatts of Power Generation- Dangote
BY Abiodun Saheed Omodara July 17, 2025 0

President of the Dangote Group, Alhaji Aliko Dangote, argues that Nigeria's low electricity generati...

READ ALSO
FG Unveils Strategy to Enhance Aquaculture and Reduce Fish Imports in Nigeria
BY Abiodun Saheed Omodara July 16, 2025 0

The federal government is committed to reducing Nigeria's reliance on fish imports by enhancing loca...

READ ALSO
FG Partners CILSS to Enhance Food and Nutrition Safety in Nigeria
BY Abiodun Saheed Omodara July 16, 2025 0

The Federal Government is intensifying its initiatives to improve food and nutrition safety through...

READ ALSO
Dangote Aims to Cut Cooking Gas Prices, Plans Direct Sales to Consumers
BY Abiodun Saheed Omodara July 16, 2025 0

President of the Dangote Group, Alhaji Aliko Dangote,  has revealed intentions to lower th...

READ ALSO
US-Nigeria Trade Relations Face Significant Decline Amid New Tariffs
BY Abiodun Saheed Omodara July 14, 2025 0

The trade ties between the United States and Nigeria have encountered a notable decline, with offici...

READ ALSO
FG Commits to Clearing Legacy Debts for Gas Producers
BY Abiodun Saheed Omodara July 12, 2025 0

The Federal Government has announced its intention to clear all due payments to gas producers, inclu...

READ ALSO
Solid Minerals Minister Addresses Blackmail Against Mining Marshals, Vows Sector Reforms
BY Abiodun Saheed Omodara July 12, 2025 0

The Minister of Solid Minerals Development, Dr. Dele Alake, has stated that the Mining Marshals (MM)...

READ ALSO
Senate Calls for Reassessment of Nigeria's Power Sector Strategy
BY Abiodun Saheed Omodara July 11, 2025 0

The Senate has urged the Federal Government to reconsider its strategy regarding the power sector, a...

OUR CHANNELS:

FG Unveils Legal Framework to Protect Endangered Species
BY Abiodun Saheed Omodara July 21, 2025 0

The federal government has announced plans to implement a legal framework aimed at safeguarding enda...


Kogi Lecturer Dies during Sex with Student
BY Abiodun Saheed Omodara July 21, 2025 0

The lifeless body of Olabode Ibikunle, a senior lecturer at Kogi State University, was discovered in...


Burkina Faso's Junta Dissolves Electoral Commission to Cut Costs, Boost Sovereignty
BY Abiodun Saheed Omodara July 21, 2025 0

The military government of Burkina Faso has abolished the Independent National Electoral Commission,...


FG Urges Court to Dismiss Kanu's No-Case Submission Amidst Terrorism Charges
BY Abiodun Saheed Omodara July 21, 2025 0

The Federal Government on Friday, requested that the Federal High Court in Abuja dismiss the no-case...


Army Launches 2025 Bi-Annual Training on Mental Health for Combat Troops
BY Abiodun Saheed Omodara July 21, 2025 0

The Nigerian Armed Forces has initiated the 2025 First Bi-Annual Sensitisation Training focused on S...


Nigeria Police Force Successfully Rescues 31 Abducted Individuals
BY Abiodun Saheed Omodara July 21, 2025 0

The Nigeria Police Force has reported the successful rescue of 31 abducted individuals in two distin...


Health Workers Threaten Nationwide Strike Over Controversial Allowance
BY Abiodun Saheed Omodara July 21, 2025 0

Medical practitioners in Ekiti and Ondo states have voiced strong opposition to a recent circular is...


Nigeria's Electricity Tariff Subsidy Soars to N1.94 Trillion in 2024, Marking a 219.67% Increase
BY Abiodun Saheed Omodara July 19, 2025 0

The electricity tariff subsidy from the Federal Government has increased significantly from N610 bil...


Tinubu Renamed University of Maiduguri in Honor of Late President Muhammadu Buhari
BY Abiodun Saheed Omodara July 20, 2025 0

President Bola Tinubu has approved the renaming of the University of Maiduguri in Borno State to Muh...


Obama’s Debunk Report on Divorce
BY Abiodun Saheed Omodara July 20, 2025 0

Former U.S. President Barack Obama and his wife, Michelle, have put to rest rumors regarding their m...


More Articles

Load more...

Menu