2023 PDP Presidential candidate Atiku Abubakar has condemned a proposal by the federal government to utilise a portion of the nation’s 20 trillion naira pension funds.
Atiku referenced Wale Edun, the Finance Minister and Coordinating Minister of the Economy’s disclosure at a briefing after the Federal Executive Council (FEC) meeting at the Presidential Villa on Tuesday, May 14.
The Minister reportedly unveiled the government’s intention to inject N20 trillion from pension funds and other sources into critical infrastructure projects nationwide, aiming to stimulate economic growth. While Edun mentioned potential foreign investment interest in the long run, he emphasized a current focus on domestic savings.
Atiku cliamed details were scant, leaving uncertainties about specifics such as the proportion of funds to be sourced from Pension Funds.
He labelled it as a potential disaster for retired workers who rely on pensions. He emphasized the need for strict adherence to the Pension Reform Act of 2014 and the regulations set by the National Pension Commission (PenCom).
The statement on his X page referred to the move as a planned perpetuation of illegality.
He urged Edun to desist from shortcuts to fix the economy, rather enact good policies for revival.
He wrote:
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 that 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.
