The governor of Rivers State, warns Wike

Ijaw National Congress, the governor of Rivers State, warns Wike that nothing should affect Fubara’s tenure.

Nigerians have received assurances from the Federal Government that their pension monies are secured and cannot be tampered with.

Finance and Coordinating Minister of the Economy Mr. Wale Edun stated, “There are rules and well laid out limitations about what pension fund assets can be invested in and what it cannot be invested in.”

He continued, saying, “The Federal Government has no intention whatsoever of going outside those bounds or prescribed limits, which are there to safeguard the workers’ pensions.“

When Edu spoke, there were apprehensions expressed in certain political and labor circles that the federal government could want to use the money for infrastructure development.

Those making the claims include the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and former presidential candidate Atiku Abubakar.

Following the lengthy Federal Executive Council (FEC) meeting on Tuesday, Edun made suggestions on the government’s intention to spend over N20 trillion in pension funds on infrastructure.

There were Nigerians who took offense at the comment.

The minister released a video yesterday outlining the government’s stance on pension funds.

“I’ve noticed that there are rumors circulating that the federal government intends to unlawfully obtain the hard-earned savings and pension contributions of employees,” the speaker stated. There is nothing

that is more false than this.

Like the majority of the financial sector, the pension industry is heavily regulated. What can and cannot be invested with pension fund assets is governed by regulations and clearly stated restrictions.

“The Federal Government has absolutely no intention of going outside those boundaries, or beyond those established restrictions, which are in place to protect worker pensions.

“The Federal Executive Council’s announcements were made solely for informational purposes. No permission was requested for any kind of action.

According to information provided, there is an ongoing initiative involving all of the major players in the long-term savings market, or those who manage funds that are available over an extended period of time,

to determine how best to use the legal constraints to drive investment in key growth areas like housing and infrastructure, as well as, of course, to find a way to make mortgages affordable for Nigerians.

“No attempt is being made, nor is it being considered, to provide risky investments for pension funds, insurance funds, or any other type of investment funds within this context.

“Not a single attempt to raise the danger. Not a single effort was made to reduce the returns that would have been obtained otherwise.

It’s crucial to keep in mind that the federal government has the power to guarantee stocks when they’re required to provide funds that will spur economic expansion, job creation, and poverty reduction.

“The greatest minds in the financial sector are put to the test, challenged, and ongoing dialogue to find solutions that protect long-term savings while also offering a path to accelerate economic growth.”

The NLC and TUC wrote to Edun stating that his announcement had caused “deep apprehension and unrest among workers.”

“The disclosure that the government has already obtained almost 70% of the total value of the pension fund is not only concerning but completely unacceptable,” they continued.

The workers also requested to know which Pension Board would oversee any discussions with the government, as there is currently none in place, in a letter signed by NLC President Joe Ajaero and TUC

Deputy President Tommy Okon.

“Resist any action that seeks to undermine the retirement savings of Nigerian workers,” is what they pledged to do.

“On behalf of the NLC and the TUC, we write this letter with grave concern and unwavering determination,” the letter states.

“The announcement that the government intends to use the substantial N19.66 trillion pension funds for infrastructural development has caused deep anxiety and unrest among Nigerian workers, who are the

primary contributors and eventual beneficiaries of these funds,” the honorable minister said.

Permit us to emphasize how serious this situation is. It is shocking to learn that the government has already obtained almost 70% of the value of the pension fund; moreover, it is completely unacceptable.

Nigerian employees have put their hard-earned money into retirement security, not as a funding source for public works initiatives.

“Any future intentions to use these monies must be shelved, especially in light of the previous government borrowing practices’ lack of accountability and transparency.

“Your suggestion to further leverage these funds for the ostensible improvement of the housing and infrastructure sectors raises grave concerns regarding responsible governance and economic restraint.

“Given the uncertainty surrounding prior borrowing methods, where does the government plan to obtain the additional N20 trillion it needs to acquire?

“My doubts about the viability and durability of your program are significantly heightened by the lack of information surrounding this issue.

“Nigerian workers, particularly in light of the fact that the PENCOM Board has not been constituted in accordance with the statutes, rightfully demand guarantees that their retirement funds will not be subject

to additional borrowing by the Federal Government.”

It begs the question of which board oversees these kinds of conversations with the government. Accessing this fund for borrowing purposes is not supported by the Pension Act.

It is depressing to learn that the NLC and TUC, who represent the owners of the total pension fund contributions, have not been consulted or informed of the government’s intentions, despite the

government’s promises of extensive consultation with key pension industry stakeholders.

The integrity of pension funds, which ought to always be handled with the utmost respect and protection, is threatened by this lack of openness.

“The government should give priority to other funding sources that do not jeopardize the financial stability of Nigerian laborers.”

“We maintain that every effort to use pension funds to support national development must be carried out with the highest levels of responsibility, openness, and respect for the rights and interests of employees.

“Furthermore, we vehemently disagree with the idea of the government participating in intense rivalry with other investors in the pension fund industry.”