Abuja announces plans to raid ₦17tr pension funds to build 5,000km of roads Edun fails to list
By Jeph Ajobaju, Chief Copy Editor
Abuja has announced plans to divert N17 trillion pension funds to build or rehabilitate 5,000 kilometres of roads, raising concerns about transparency and risks in raiding the savings of pensioners for projects when they are hardly paid their entitlements.
Finance Minister Wale Edun disclosed the initiative in an online parley with journalists, according to a statement issued by the ministry’s spokesman, Mohammed Manga.
Edu presented the project as part of a broader strategy to stimulate economic growth through private sector participation and institutional investment.
However, the decision to deploy pension funds – money meant to secure the financial future of retirees – into road construction has sparked concerns about accountability, potential mismanagement, and the absence of clear oversight mechanisms.
The PUNCH reports that critics point to Nigeria’s notorious track record of poor public financial management, culture of contract inflation, and abandoned infrastructure projects as reasons for heightened scrutiny.
Edun did not list the highways earmarked for construction, making it difficult for citizens, stakeholders, and financial watchdogs to track expenditures and assess progress.
Given past budgetary leakages and misappropriation, transparency advocates argue that such cloudiness could enable financial mismanagement and even outright theft.
Nigeria’s pension fund, estimated at over ₦17 trillion, serves as a critical safety net for millions of retirees and the National Pension Commission (PenCom) previously warned of the risks of using pension savings for non-traditional investments.
Experts caution that diverting pension funds to infrastructure without stringent safeguards could jeopardise retirees’ benefits if projects underperform or if funds are misallocated.
The federal government has argued that private sector involvement and institutional investments will mitigate risks, citing global best practices where pension funds have been used for infrastructure development.
However, skepticism remains high in the absence of detailed implementation plans, stakeholder consultations, and legally binding safeguards.
According to The PUNCH, with inflation mounting and the economic landscape still recovering from fiscal challenges, the move to leverage pension funds for road construction demands greater scrutiny.
Stakeholders insisted that until the government provides comprehensive details on project selection, execution frameworks, and accountability measures, concerns over financial prudence and pensioners’ security will continue to overshadow the initiative.
Edun said:
- The economy has pulled back from the brink, citing how GDP grew 3.84 per cent in Q4 2024 – close to the 3.4 per cent annual target – while inflation began to ease, revenues increased, and the exchange rate showed signs of strengthening.
- There was a 20 per cent increase in government revenue last year, alongside a reduced budget deficit and a decline in debt servicing as a percentage of revenue.
- The government is resolute in its commitment to responsible spending, stronger fiscal management, and efforts to raise the tax-to-GDP ratio to 18 per cent over the next 18 months – through improved compliance, digitisation, and broadening the tax base.
- The next phase of economic growth would be driven by private-sector investment, saying a ₦1 trillion low-interest mortgage fund – backed by both public and private financing – will soon be launched to stimulate the housing sector.
- Pension funds and institutional investors are being mobilised to finance 5,000 kilometres of roads under the Highways Management and Development Initiative.
- Nigeria is making ongoing efforts to diversify the economy, even as oil revenue remains essential, and plans are underway to expand domestic refining capacity to 1.2 million barrels per day as well as ensure a secure, investor-friendly operating environment in the oil sector.
- Exporters should focus on domestic and regional markets to cushion the impact of global shocks, including recent tariff policies introduced by the United States.
- Underscored the urgency of youth-focused economic policy with an average national age of 16.9 and over 600,000 graduates annually.
- Cited upcoming funding mechanisms to support young entrepreneurs and highlighted President Bola Tinubu’s recent launch of a national sports empowerment programme in Ogun.
- Reaffirmed the government’s commitment to enabling a business-friendly environment and fostering sustainable, inclusive growth for all Nigerians.
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