The Nigerian government has reassured citizens that the country’s N20 trillion pension fund remains safe and secure. This assurance came from the Minister of Finance, Wale Edun, in a statement issued on Thursday.
Following the recent Federal Executive Council meeting, Edun announced plans to utilize local funds for infrastructure development. This proposal sparked criticism from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), who cautioned the government against using the pension fund for such projects.
NLC President Joe Ajaero and TUC Deputy President Tommy Okon jointly emphasized the importance of safeguarding the pension fund, noting, “Nigerian workers have entrusted their hard-earned savings for retirement security, not as a means for government projects. It is imperative to halt further plans to tap into these funds, especially given past government borrowing practices’ lack of transparency and accountability.”
In response, Edun clarified that the government does not intend to borrow the pension fund for infrastructure development. He emphasized the regulatory framework governing the pension industry, stating, “The pension industry, like most financial industries, is highly regulated. There are rules and limitations about what pension money can be invested in and what it cannot be invested in. The Federal Government has no intention of going beyond those limitations and bounds, which are there to safeguard workers’ pensions.”
Edun further explained that the initiative presented to the Federal Executive Council involves engaging major stakeholders in the long-term savings industry. The goal is to explore how these funds can be utilised within existing regulations and laws, ensuring the protection of workers’ pensions.
