Atiku: FG Can’t Use Workers Savings For Investments
● Warns the move would put the fate of retirees in jeoparpy
By Jonas Happy
Former Vice President of Nigeria, Atiku Abubakar has cried out over moves by the Federal Government to borrow funds from the nation’s pension scheme to invest in infrastructure.
Atiku who took to his “X” handle warned that such a plan to utilise the savings of Nigerian workers who look up after their retirement to the payment of pensions and gratuities would prove catastrophic.
“My attention is drawn to a disturbing disclosure by the Finance Minister and Coordinating Minister of the Economy, Wale Edun”, the two-time presidential candidate of the PDP remarked, “as he addressed State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa on Tuesday, 14 May.”
Atiku stated, “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.”
Atiku urged the Federal Government to halt the initiative immediately, saying that the plan would bring calamity on poor workers who depend on money from the pension scheme when they retire from service to take care of themselves and their families.
“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” Atiku hissed, saying, “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:, Atiku warned.
He noted 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”, the former Vice President added.