Minister of Finance, Wale Edun, has addressed concerns regarding the government’s purported plan to utilize the N20 trillion Pension Fund for infrastructure and housing financing.
Edun emphasized that such claims are unfounded, stating that 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.
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He assured that any utilization of the funds would strictly adhere to existing regulations governing pension funds.
Edun further highlighted the ongoing dialogue within the financial industry to find solutions that balance the long-term security of workers’ savings with opportunities to stimulate economic growth.
“It has come to my notice that there are stories making rounds that the federal government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth.”
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“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.”
“It is an ongoing conversation, a challenge and a test for the best and brightest in the financial industry to come up with solutions that while safeguarding the long-term savings of workers, do provide an avenue that can help to boost growth in the economy,” Edun said in a statement on Thursday.
Meanwhile, the organised labour has cried out over the Federal Government’s plan to utilise pension funds for infrastructure development.
This is contained in a joint letter signed by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which was addressed to the Minister of Finance on Thursday in Abuja.
The letter, which was signed by Mr Joe Ajaero, NLC President and Mr Tommy Etim-Okon, TUC Deputy President, was entitled “Leave our Pension Fund Alone:Do not Tamper with Workers’Funds”.
According to Ajaero, the announcement has ignited deep apprehension and unrest among Nigerian workers, who are the primary contributors of these funds.
“We, therefore, urge the government to reconsider its plans to tap into pension funds and instead explore sustainable financing options that do not
compromise the retirement security of Nigerian workers.
“Organised Labour will resist any action that seeks to undermine the retirement savings of Nigerian workers,” they said.
The letter, however, noted that the government had allegedly accessed nearly 70 per cent of the entire pension funds, adding that it was not merely alarming; it was unacceptable.
It said that Nigerian workers had entrusted their hard-earned savings for retirement security, and not for government projects.