My attention is drawn to a disturbing disclosure by the Finance Minister and Coordinating Minister of the Economy, Wale Edun, as he addressed State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa on Tuesday, 14 May.
Atiku on his verified X handle said the Minister affirmed that Federal Government on a move 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 said Minister also indicated that although “the initiative is expected to attract foreign investment interest over time”, domestic savings are his ‘immediate focus’ for now.
The former vice president said the Minister did not provide any useful details, such as the percentage of the funds to be mopped up from the Pension Funds, for example.
Atiku said the move must be halted immediately, stressing that, 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 lamented that 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 further said there are NO free Pension Funds that are more than 5% of the total value of the nation’s pension fund for Edun to fiddle with.
“There are no easy ways for 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. “
