The Nigerian government has assured that the country’s N20 trillion pension fund is safe and secure.
Finance Minister Wale Edun made this announcement on Thursday.
Following the Federal Executive Council meeting last Tuesday, Edun mentioned the government’s plan to utilize local funds for infrastructure development.
This statement faced criticism from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which warned the Federal Government against using the pension fund.
In a joint statement, NLC President Joe Ajaero and TUC Deputy President Tommy Okon emphasized that “Nigerian workers have saved their hard-earned money for retirement security, not for government projects. It is crucial to stop any plans to use these funds, especially considering past government borrowing practices’ lack of transparency and accountability.”
Edun refuted claims that the government intended to borrow the N20 trillion pension fund for infrastructure development.
“The pension industry, like most financial sectors, is highly regulated. There are strict rules and limitations regarding what pension funds can and cannot be invested in. The Federal Government has no intention of exceeding these boundaries, which are in place to protect workers’ pensions.
What was presented to the Federal Executive Council was an ongoing initiative involving major stakeholders in the long-term savings industry, exploring ways to use these funds within regulations and laws to drive investment in critical growth areas,” Edun explained.