The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have formally cautioned the federal government against using funds from the National Pension Fund Scheme for economic and infrastructural development.
This warning was issued in a petition addressed to key government officials, including the Minister of Finance, Wale Edun, the Secretary to the Government of the Federation, the Minister of Labour, and the Head of Service, among others.
The petition highlights the concern among civil service workers following the government’s announcement to utilise the substantial pension funds, totaling N19.66 trillion, for infrastructural development. The NLC and TUC expressed deep apprehension, noting that workers are the primary contributors and eventual beneficiaries of these funds.
The labour organisations criticised the government for having already accessed nearly 70% of the pension fund value, describing this move as alarming and unacceptable. In a statement jointly signed by Comrade Joe Ajaero of the NLC and Etim Okon of the TUC, they emphasised that the pension savings are meant to secure workers’ retirements, not to fund government projects.
The statement stressed the need for transparency and accountability, pointing out the government’s past borrowing practices and questioning the prudence of leveraging pension funds for development purposes.
They demanded clarity on how the government intends to source the additional N20 trillion it seeks to acquire, highlighting the lack of consultation with major stakeholders, including the NLC and TUC.
The labour leaders underscored that the PENCOM Board has not been constituted as required by law, raising further concerns about the legitimacy of the government’s actions. They insisted that any initiative to use pension funds for national development must be conducted transparently, with full accountability and respect for workers’ rights and interests.
In their plea, the NLC and TUC urged the government to prioritise alternative funding sources that do not jeopardise the financial security of Nigerian workers. They called for the utmost reverence and protection of pension funds, asserting that these should not be imperilled by federal government borrowing.
