The Federal Government has refuted claims suggesting its intention to borrow the N20 trillion pension fund for infrastructure development.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated in Abuja on Thursday, assuring that the government would adhere to established regulations governing the pension fund.
Edun clarified that the pension industry, like other financial sectors, operates under strict regulatory frameworks, ensuring the protection of workers’ pensions.
He emphasized the government’s commitment to safeguarding workers’ pension contributions, stating, “The Federal Government has no intention whatsoever to go beyond those limitations and go outside those bounds which are there to safeguard the pensions of workers.”
Addressing concerns raised following a statement made after a Federal Executive Council meeting, Edun highlighted an ongoing initiative aimed at maximizing the utilization of long-term savings within legal boundaries to drive investment in critical growth areas.
He stressed that the government’s focus is on leveraging these funds within existing regulations and laws to stimulate investment in key sectors.
The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) echoed workers’ concerns, urging the government to refrain from accessing the pension fund for infrastructure projects.
They emphasized that workers’ retirement savings should not be used for government projects, expressing apprehension over the potential risks of borrowing the funds.
Joe Ajaero, President of the NLC, and Tommy Okon, Deputy President of the TUC, called for transparency and accountability in government borrowing practices, demanding assurances that workers’ retirement funds would remain untouched.
They emphasized the need for widespread consultation with stakeholders in the pension industry before any decision is made regarding the fund.
Similarly, representatives from various pensioners’ unions across states voiced their opposition to the government’s proposed plan.
Bunmi Ogunkolade, Head of Information at the Nigerian Union of Pensioners, emphasized that the pension fund belongs to workers and should not be accessed for infrastructure development.
The unions called on the government to explore alternative sources of funding for its projects, ensuring the protection of retirees’ contributions.
