- Organized Labour strongly opposes the government’s proposal to use N19.66 trillion pension funds for infrastructure, citing retirement security concerns
- Labour leaders demand transparency and sustainable financing options, criticizing the government’s lack of consultation and past borrowing practices
The Organised Labour has strongly objected to the Federal Government’s proposal to utilize the N19.66 trillion pension funds for infrastructure development. This objection was conveyed in a joint letter signed 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 NLC President Joe Ajaero and TUC Deputy President Tommy Etim-Okon, was titled “Leave our Pension Fund Alone: Do not Tamper with Workers’ Funds.” Following the government’s announcement, the labour leaders expressed deep concern and unrest among Nigerian workers, who are the primary contributors to these funds.
“We 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 highlighted that the government had allegedly accessed nearly 70% of the entire pension funds, a situation described as alarming and unacceptable. They noted that Nigerian workers have entrusted their hard-earned savings for retirement security, not 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,” the letter said.
Labour leaders questioned the government’s plan to source the additional N20 trillion it seeks to acquire, especially given the ambiguity surrounding previous borrowing practices. They argued that the lack of clarity only fuels scepticism regarding the initiative’s feasibility and sustainability.
“Nigerian workers demand assurances that their retirement funds will not fall victim to further Federal Government borrowing, 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,” the letter emphasized.
Despite government assurances of widespread consultation with major stakeholders in the pension industry, the NLC and TUC, representing the owners of all pension fund contributions, were neither consulted nor informed about the government’s intentions. They argued that 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 fund users 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.
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