Former Vice President Atiku Abubakar has expressed serious concerns about the administration of President Bola Tinubu’s plans to utilize the N20 trillion pension funds for financing critical infrastructure projects across Nigeria.
This announcement was made by Wale Edun, the Coordinating Minister for the Economy and Minister of Finance, after a Federal Executive Council (FEC) meeting. Edun highlighted the government’s strategy to tap into domestic financial resources, including pension and life insurance funds, to drive national economic growth and address significant infrastructure needs.
Atiku, a former presidential candidate of the Peoples Democratic Party (PDP), has condemned this initiative as deeply troubling.
He stressed the need for the plan to be halted immediately, arguing that it is a misguided approach that could have severe negative impacts on the lives of Nigerians who rely on their pensions for survival after retirement.
Using his X (formerly Twitter) account, Atiku articulated his objections. He referred to the statement made by Edun, who indicated that the government aims to stimulate economic growth by unlocking N20 trillion from pension funds and other resources to finance infrastructure projects.
Edun mentioned that while the initiative is expected to eventually attract foreign investments, the immediate focus is on domestic savings.
Atiku pointed out that Edun did not provide specific details, such as the proportion of pension funds to be used. He firmly stated that this move must be stopped, labeling it as a misguided initiative with potentially disastrous consequences for pensioners who depend on these funds after their retirement.
Atiku emphasized the importance of adhering strictly to the Pension Reform Act of 2014 (PRA 2014) and the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom).
He highlighted the legal limitations on investing pension funds, noting that only up to 5% of total pension assets can be invested in infrastructure projects. He referenced data indicating that as of December 2023, total pension assets were approximately N18 trillion, with 75% already invested in Federal Government securities.
Thus, he argued, there is no available pension fund exceeding 5% of the total assets that Edun can utilize.
Atiku concluded by asserting that addressing the challenges of funding infrastructure development requires comprehensive reforms to restore investor confidence in Nigeria’s economy and leverage private resources, skills, and technology, rather than attempting to misuse pension funds.
