Don’t fiddle with Nigeria’s Pension Funds Asset, Atiku warns Tinubu

…says it’s a breach of the Pension Reform Act

By Tunde Opalana

The administration of President Bola Tinubu has been warned not to dip hands into the Pension Funds Asset to offset certain financial obligations of the Federal Government.

Former vice president of the country, Alhaji Atiku Abubakar sounded this note of warning in a statement he personally signed and issued by his media office on Wednesday.

Atiku said the Tinubu government will be breaching the Pension Reform Act by fiddling with the pension funds.

The 2023 presidential candidate of the Peoples Democratic Party (PDP) was reacting to a statement by the Minister of Finance, Mr. Wale Edun in which he disclosed that the government is tinkering with the idea of unlocking the pension funds to augment government finances.

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Atiku in the statement said: “Mmy 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.

“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.

“He provided no useful details, such as the percentage of the funds to be mopped up from the Pension Funds, for example. 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.”

Atiku said this is another attempt to perpetrate illegality by the Federal Government.

He therefore said that “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.

“There is no free Pension Funds that is more than 5% of the total value of the nation’s pension fund for Mr. 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.”