Former Vice President, Atiku Abubakar has faulted plans by the President Tinubu-led government to deploy N20 trillion pension funds to finance critical infrastructure in the country.
Atiku who criticised the move as misguided and an attempt to perpetrate illegality, warned that the initiative could lead to disastrous consequences on the lives of hardworking Nigerians.
The PDP stalwart made these remarks in response to a disclosure made by the Finance Minister and Coordinating Minister of the Economy, Wale Edun.
Mr. Edun, after a two-day Federal Executive Council session chaired by President Bola Tinubu at the Presidential Villa on Tuesday, revealed that the Federal government has initiated plans to unlock N20 trillion Pension Funds for national projects.
The Minister noted that the initiative was integral to Tinubu’s overarching efforts to stabilize the economy amidst elevated inflation and interest rates.
However, In a statement on Wednesday, Atiku said on his X account that the law only required that 5% of the fund was to be used for infrastructural projects.
He warned that such a move, if not halted, could have severe repercussions for the country’s workforce.
According the him, diverting these funds, which consist of the savings of diligent workers relying on their pensions in retirement, could disastrously affect the lives of countless Nigerians who have retired after years of service.
The statement reads: “My attention is drawn to a disturbing disclosure by the Finance Minister and Coordinating Minister of the Economy, Wale Edun, as he addressed State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa on Tuesday, 14 May.
“There is, according to the Minister, a move by the Federal Government to rev up economic growth by unlocking N20 trillion from the nation’s pension funds and other funds to finance critical infrastructure projects across the country. The Minister has indicated that although “the initiative is expected to attract foreign investment interest over time”, domestic savings are his ‘immediate focus’ for now.
“He provided no useful details, such as the percentage of the funds to be mopped up from the Pension Funds, for example. Even at that, this move must be halted immediately! It is a misguided initiative that could lead to disastrous consequences on the lives of Nigeria’s hardworking men and women who toiled and saved and who now survive on their pensions having retired from service.
“It is another attempt to perpetrate illegality by the Federal Government. The government must be cautioned to act strictly within the provisions of the Pension Reform Act of 2014 (PRA 2014), along with the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom). In particular, the Federal Government must not act contrary to the provisions of the extant Regulation on investment limits to wit: Pension Funds can invest no more than 5% of total pension funds’ assets in infrastructure investments. I note that as of December 2023, total pension funds assets were approximately N18 Trillion, of which 75% of these are investments in FGN Securities.
“There is NO free Pension Funds thst is more than 5% of the total value of the nation’s pension fund for Mr. Edun to fiddle with.
There are no easy ways for Mr. Edun to address the challenges of funding infrastructure development in Nigeria. He can’t cut corners. He must introduce the necessary reforms to restore investor confidence in the Nigerian economy and to leverage private resources, skills, and technology. -AA”
