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N20trn: Pension funds cannot be your immediate focus- Atiku tells Wale

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Oppn parties are greatest threats to Nigeria democracy- Atiku

The decision of the federal government to mop up pension funds for infrastructural development has been described as illegal by Atiku Abubakar.

 

Finance Minister and Coordinating Minister of the Economy, Wale Edun, after Tuesday’s Federal Executive Council (FEC) meeting, disclosed that while foreign investors will be welcomed in the infrastructure investment, the Tinubu-led administration would focus on domestic savings.

 

Former presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, said the decision of the federal government disclosed by Wale showed the Tinubu administration was out to perpetrate illegality to make up for its poor policies that scared investors out of the country.

 

“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.

 

“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.”

 

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The Waziri of Adamawa continued, “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.

 

“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 said on Wednesday, May 15.

 

The former vice president, Atiku, called on Wale and Tinubu to address the current government’s poor economic policies he said were responsible for paucity of foreign investment. He said looking up to the pension funds of the retirees must be in line with the legally investable five percent.

 

Atiku added, “There are no free Pension Funds that are 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.”