The Organised Labour has in clear terms rejected the intention by the Federal Government to disburse a chunk of the N19.66 tr pension assets for infrastructure development.
Labour represented by Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) in a joint address to the Minister of Finance in Abuja, entitled “Leave our Pension Fund Alone: Do not Tamper with Workers Funds.” said the workers were apprehensive of FGs intent.
Making it clear the Federal workers remained the primary contributors to the fund and are determined and set to resist such act if retreat is ignored; the organised Labour was clear that the government should stay clear of pension 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.”
Noting that access had set in with nearly 70 per cent of the entire pension funds allegedly assessed, Labour said the action was not merely alarming; it was unacceptable. They reminded Government that they had entrusted their hard-earned savings for retirement security, and not for government projects.
Raising the red flag, Labour declared, “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. “You proposal to further leverage these funds for the purported betterment of housing and infrastructure raises serious concerns about fiscal prudence and responsible governance.”
According to labour, where does the government intend to source the additional N20 tr it seeks to acquire, especially considering the ambiguity surrounding previous borrowing practices. It said the lack of clarity on the matter only fuels skepticism regarding the feasibility and sustainability of the initiative.
Pointing out that borrowing rules were always unclear, Labour unions said, “Nigerian workers demand assurances that their retirement funds will not fall victim to further Federal Government borrowing. This is especially when the PenCom Board has not been constituted as enshrined in the statutes. One is left to wonder which Board superintends over such discussion with the government. Seeking to borrow from the fund is not backed by the Pension Act,” it said.
The organised Labour punctured the intent pointing out that stakeholders in the pension industry were not consulted and to make the issue more disheartening, Labour stated that the NLC and TUC, representing major the owners of the entire pension fund contributions, were not consulted nor informed about the government’s intentions.
