Organised labour rejects Nigerian govt’s plan to use N19tr pension funds to drive infrastructural growth

The organised labour has rejected plans by the Federal Government to use the N19 trillion domiciled in the National Pension Fund Scheme to drive economic and infrastructural development across the country.

In a strongly worded letter issued on May 15 and signed by the President of the Nigeria Labour Congress (NLC), Joe Ajaero, and Etim Okon for the Trade Union Congress (TUC), the labour warned that Nigerian workers would resist any attempt to use the money for any other reason other than the designed purpose.

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, the Secretary to the Government of the Federation, George Akume, the Minister of Labour and Employment, Nkeiruka Onyejeocha and the Head of Service of the Federation, Folasade Yemi-Esan, were copied in the letter.

The unions lamented that the plans by the government to deploy part of the funds to drive economic growth were already sending apprehension to workers in the civil service.

According to NLC and TUC, the recent announcement by the finance minister regarding the government’s intention to utilize the substantial pension funds of N19.6 trillion for infrastructural development has caused apprehension and unrest among Nigerian workers who are the primary contributors and eventual beneficiaries of the funds.

They described as unacceptable reports that the government has already accessed nearly 70% of the pension fund.

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The letter read: “It is imperative to halt any further plans to tap into these funds, especially given the lack of transparency and accountability in past government borrowing practices. Your proposal to further leverage these funds for the purported betterment of housing and infrastructural sectors raises serious questions about fiscal prudence and responsible governance.

“Where does the government intend to source the additional N20 trillion it seeks to acquire, especially considering the ambiguity surrounding previous borrowing practices? The lack of clarity on this matter only fuels skepticism regarding the feasibility and sustainability of your initiative.

“Nigerian workers rightfully demand assurances that their retirement funds will not fall victim to further federal government borrowing, especially when the PENCOM Board has not been constituted as envisaged by the statutes. One is left to wonder which board superintends over such discussion with the government seeking to borrow from this fund, which is not backed by the Pension Act.

“Despite the government’s assurances of widespread consultation with major stakeholders in the pension industry, it is disheartening to note that the NLC and TUC, representing the owners of the entire Pension fund contributions, have neither been consulted nor informed about the government’s intentions.

“This lack of transparency undermines the sanctity of pension funds, which should be treated with the utmost reverence and protection at all times. It is incumbent upon the government to prioritize alternative sources of funding that do not imperil the financial security of Nigerian workers.

“We insist that any initiative aimed at leveraging pension funds for national development must be – executed with utmost transparency, accountability, and respect for the rights and interests of workers.”

By: Babajide Okeowo

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