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Labour Rejects Nigerian Government’s Plan To Utilize Pension Funds For Infrastructure Development

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Labour Rejects Nigerian Government’s Plan To Utilize Pension Funds For Infrastructure Development

Reported by Noab Abdulsalam on May 16, 2024

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have strongly opposed the Nigerian government’s proposal to utilize funds from the National Pension Fund Scheme for economic and infrastructural development…..read also Organized Labour Rejects Federal Government’s N48,000 Minimum Wage Offer

 

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In a letter addressed to key government officials, including the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, and the Minister of Labour, the labour unions expressed concern over the government’s intention to tap into the substantial pension funds, totaling N19.66 trillion.

The announcement by the Finance Minister regarding the government’s plan to access a portion of these funds has sparked unrest among Nigerian workers, who contribute to and rely on these funds for retirement security.

Labour leaders emphasized that workers have entrusted their savings for retirement, not as a means for government projects. They highlighted the lack of transparency and accountability in past government borrowing practices and raised questions about the feasibility and sustainability of the proposed initiative.

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The unions demanded assurances that pension funds would not be further jeopardized by government borrowing, especially in the absence of a constituted PENCOM Board. They criticized the government for lack of consultation with major stakeholders in the pension industry, including the NLC and TUC, and called for transparency, accountability, and respect for workers’ rights and interests in any initiative involving pension funds.

The labour leaders urged the government to prioritize alternative sources of funding for national development that do not compromise the financial security of Nigerian workers. They insisted that any initiative involving pension funds must be executed with utmost transparency and accountability.

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