Atiku said Mr Edun provided no useful details, such as the percentage of the funds to be mopped up from the pension funds.
By Jeffrey Agbo
Former Vice President Atiku Abubakar has cautioned President Bola Tinubu’s administration against using pension funds to finance infrastructure projects across the country.
Atiku said in a statement on Wednesday that his comment was in reaction to what he described as “disturbing disclosure” by the finance minister who doubles as the coordinating minister of the economy, Wale Edun, at the Presidential Villa on Tuesday while interacting with State House correspondents after the Federal Executive Council (FEC) meeting.
Atiku said, “There is, according to the Minister, a move by the Federal Government to rev up economic growth by unlocking N20 trillion from the nation’s pension funds and other funds to finance critical infrastructure projects across the country. The Minister has indicated that although ‘the initiative is expected to attract foreign investment interest over time,’ domestic savings are his ‘immediate focus’ for now.”
Atiku said Mr Edun provided no useful details, such as the percentage of the funds to be mopped up from the pension funds.
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“Even at that, this move must be halted immediately! It is a misguided initiative that could lead to disastrous consequences on the lives of Nigeria’s hardworking men and women who toiled and saved and who now survive on their pensions having retired from service,” he added.
“It is another attempt to perpetrate illegality by the Federal Government. The government must be cautioned to act strictly within the provisions of the Pension Reform Act of 2014 (PRA 2014), along with the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom). In particular, the Federal Government must not act contrary to the provisions of the extant Regulation on investment limits to wit: Pension Funds can invest no more than 5% of total pension funds’ assets in infrastructure investments. I note that as of December 2023, total pension funds assets were approximately N18 Trillion, of which 75% of these are investments in FGN Securities.”
Atiku noted that there is no free pension funds that is more than 5 per cent of the total value of the nation’s pension fund for Edun to “fiddle with”.
“There are no easy ways for Mr. Edun to address the challenges of funding infrastructure development in Nigeria. He can’t cut corners. He must introduce the necessary reforms to restore investor confidence in the Nigerian economy and to leverage private resources, skills, and technology,” he said.