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Minister of Finance and Coordinating Minister of the Economy, Wale Edun |
The Federal Government on Thursday denied an allegation that it intended to borrow the N20tn pension fund for infrastructure development.
The Minister of Finance and Coordinating Minister of the
Economy, Wale Edun, in a statement in Abuja, said the government would comply
with the established rules and regulations governing the pension fund.
The minister was reported to have told journalists, after a
two-day Federal Executive Council meeting at the Presidential Villa on Tuesday,
that the government would unveil a plan to harness local funds, including the
fund, to finance infrastructure development.
However, in a statement in Abuja on Thursday, Edun noted
that the pension industry, similar to other sectors in the financial industry,
is strictly regulated by specific legal frameworks.
He said the Federal Government did not plan to exceed these
legal boundaries, emphasising that the government was committed to protecting
workers’ pensions.
“It has come to my
notice that stories are making the round that the Federal Government plans to
illegally access the hard-earned savings and pension contributions of workers.
Nothing could be farther from the truth.
Highly regulated
“The pension industry, like most the financial industries,
is highly regulated. There are rules. There are 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 and go outside those bounds which are there to
safeguard the pensions of workers.
“What was announced to the Federal Executive Council was
that there was an ongoing initiative drawing in all the major stakeholders in
the long-term saving industry, those that handle funds that are available over
a long period to see how, within the regulations and the laws; these funds
could be used maximally to drive investment in key growth areas,” Edun
clarified.
Furthermore, Edun clarified that the government had no
intention of increasing the risk associated with the pension funds or allowing
their investments to become less secure.
Earlier on Thursday, the Nigeria Labour Congress and the
Trade Union Congress of Nigeria asked the Federal Government to refrain from
tampering with the pension fund.
The NLC President, Joe Ajaero and the TUC Deputy President,
Tommy Okon, in a joint statement on Thursday, advised the government not to
risk the future of workers by borrowing the money to fund infrastructure
development.
They stated,
“Nigerian workers have entrusted their hard-earned savings for
retirement security, not as a means for government projects. 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.’’
The unions demanded assurances from the government that
workers retirement funds “would not fall
victim to further Federal Government borrowing, especially when the PENCOM
Board has not been constituted as envisaged by the statutes,’’ arguing further
that any plan to borrow the funds is not backed by the Pension Act.
Labour expressed regrets that despite the government’s
assurances of widespread consultation with major stakeholders in the pension
industry, the NLC and TUC, representing the owners of the entire pension fund
contributions, had neither been consulted nor informed about the government’s
intentions.
According to the unions, the lack of transparency undermined
the sanctity of pension funds, which it said should always be treated with the
utmost reverence and protection.
Similarly, the Head of Information, Nigerian Union of
Pensioners, Bunmi Ogunkolade, urged the government to find an alternative
source to fund its infrastructure development plan, noting that the pension
fund did not belong to pensioners but to workers.
He said, “Simply put, we are not in support. We have told
the government to go and look for where to get their money. We have appealed to
them that they should please look for where to get money to fund infrastructure
or whatever.
On its part, the Nigeria Union of Pension in Kaduna State
also advised the Federal Government against using the money for infrastructure
development.
The state Secretary of the Nigeria Union of Pensioners,
Mallam Alhassan Balarabe Musa, who stated this in an interview with The
PUNCH, said, “The Federal Government
under former President Muhammadu Buhari attempted a similar thing but failed.’’
“For us we are not happy about that. As of now, our national headquarters are
trying everything to ensure that the fund is not going to be accessible.
“Now, we have so many retirees under contributory pension
who are unable to get their gratuities. So, why will the Federal Government
take that kind of amount? I think it’s going to be unfortunate and
unacceptable.”
The NUP Pensioners, Ogun State Council, gave a similar
warning.
The Secretary of the union, Dr Bola Lawal, said “I am sure
if you have the opportunity to ask every pensioner none will accept this move
of the government. Where is the assurance that this money will be paid back on
time?
Osun pensioners
When contacted, the Coordinator, Osun State Contributory
Pensioners, Mr Toyin Ayinde, warned the government against tampering with the
contributions of retirees.
He said, “The government must not touch our money. What
exactly is the matter with them? We don’t want anyone to touch our money under
any guise. We are not interested in any proposal from them.”