The Organized Labour has expressed strong disapproval of the Federal Government’s plan to utilize the N19.66 trillion pension funds for infrastructure development.
This objection was outlined in a joint letter by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), addressed to the Minister of Finance on Thursday in Abuja.
The letter, signed by Mr. Joe Ajaero, NLC President, and Mr. Tommy Etim-Okon, TUC Deputy President, is titled “Leave our Pension Fund Alone: Do not Tamper with Workers’ Funds.”
Ajaero highlighted that the announcement has caused significant anxiety and unrest among Nigerian workers, the primary contributors to these funds.
“We, therefore, urge the government to reconsider its plans to tap into pension funds and instead explore sustainable financing options that do not compromise the retirement security of Nigerian workers.
Organised Labour will resist any action that seeks to undermine the retirement savings of Nigerian workers,” they stated.
The letter also noted that the government had allegedly accessed nearly 70 percent of the entire pension funds, calling this not only alarming but also unacceptable.
It emphasized that Nigerian workers have entrusted their hard-earned savings for retirement security, not for government projects.
“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 infrastructure raises serious concerns about fiscal prudence and responsible governance,” it said.
The labour organizations questioned where the government intends to source the additional N20 trillion it seeks to acquire, especially considering the ambiguity surrounding previous borrowing practices.
They argued that the lack of clarity only fuels skepticism regarding the feasibility and sustainability of the initiative.
“Nigerian workers demand assurances that their retirement funds will not fall victim to further Federal Government borrowing. This is especially concerning when the PENCOM Board has not been constituted as required by law.
One is left to wonder which Board oversees such discussions with the government. Seeking to borrow from the fund is not supported by the Pension Act,” they added.
The letter criticized the government for allegedly failing to consult major stakeholders in the pension industry, despite assurances of widespread consultation.
It noted that the NLC and TUC, representing the owners of the entire pension fund contributions, were neither consulted nor informed about the government’s intentions.
“This lack of transparency undermines the sanctity of pension funds, which should be treated with 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.
Furthermore, we strongly oppose the notion of the government engaging in fierce competition with other users of funds in the pension fund market. We remain resolute in our commitment to safeguarding the welfare and interests of workers across the country,” the letter concluded.
