Tinubu's government to use N20trn Pension Funds for infrastructure development

In the meantime, a Former Vice President of Nigeria, Atiku Abubakar, has criticized the federal authorities’s proposal to make use of N20 trillion from pension funds for infrastructure initiatives, labeling the plan as unlawful.

In an announcement on Wednesday, the ex vice chairman stated on his X account the that the legislation solely required that 5% of the fund for use for infrastructural initiatives.

Abubakar expressed issues over the proposal by Wale Edun, the Minister of Finance, to “unlock” pension funds for nationwide initiatives.

He argued that such a transfer may have extreme repercussions for the nation’s workforce.

In accordance the him, diverting these funds, which include the financial savings of diligent employees counting on their pensions in retirement, may disastrously have an effect on the lives of numerous Nigerians who’ve retired after years of service.

“My consideration is drawn to a disturbing disclosure by the Finance Minister and Coordinating Minister of the Financial system, Wale Edun, as he addressed State Home correspondents after the Federal Govt Council (FEC) assembly on the Presidential Villa on Tuesday, 14 Might.

“That is, based on the Minister, a transfer by the Federal Authorities to rev up financial progress by unlocking N20 trillion from the nation’s pension funds and different funds to finance crucial infrastructure initiatives throughout the nation.

“It’s a misguided initiative that might result in disastrous penalties on the lives of Nigeria’s hardworking women and men who toiled and saved and who now survive on their pensions having retired from service.

“It’s one other try and perpetrate illegality by the Federal Authorities. The federal government should be cautioned to behave strictly throughout the provisions of the Pension Reform Act of 2014 (PRA 2014), together with the revised Regulation on Funding of Pension Belongings issued by the Nationwide Pension Fee (PenCom).

“Specifically, the Federal Authorities should not act opposite to the provisions of the extant Regulation on funding limits to wit: Pension Funds can make investments not more than 5% of complete pension funds’ property in infrastructure investments,” Atiku stated.

The PDP former presidential candidate known as on the federal authorities to hunt various reforms to deal with the infrastructural deficits within the nation.

He stated Edun should restore the arrogance buyers to drive key investments, somewhat than counting on the pension of hard-earned working Nigerians.

“I be aware that as of December 2023, complete pension funds property had been roughly N18 Trillion, of which 75% of those are investments in FGN Securities.

“There’s NO free Pension Funds thst is greater than 5% of the entire worth of the nation’s pension fund for Mr. Edun to fiddle with.

“There aren’t any simple methods for Mr. Edun to deal with the challenges of funding infrastructure improvement in Nigeria. He can’t lower corners.

“He should introduce the required reforms to revive investor confidence within the Nigerian economic system and to leverage personal sources, abilities, and know-how,” Atiku added.

By RemmyTex

Remmytex is a blogger, promoter, entrepreneur and and a businessman. Call or send a Whatsapp message for more information on +2349075664854 or you can email remmytexblog1@gmail.com

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