Atiku Denounces Government’s Proposal to Utilize N20 Trillion Pension Funds for Infrastructure Projects as Illegal

Former Vice President of Nigeria, Atiku Abubakar, has voiced strong opposition to the federal government’s proposed utilization of N20 trillion from pension funds for infrastructure projects, denouncing it as unlawful.

In a statement shared on his official X account, Abubakar highlighted that the law stipulates only 5% of the fund’s allocation for infrastructural ventures.

Expressing apprehensions over Wale Edun, the Minister of Finance’s proposal to “unlock” pension funds for national projects, Abubakar cautioned against potential adverse effects on the country’s workforce.

He underscored the gravity of diverting these funds, comprising the hard-earned savings of diligent workers, which could severely impact retired Nigerians relying on pensions for sustenance.

Abubakar’s statement addressed a revelation made by Edun during a Federal Executive Council (FEC) meeting at the Presidential Villa, where Edun outlined the government’s intention to access N20 trillion from pension funds and other sources to finance critical infrastructure projects nationwide.

Asserting that such a move would contravene the Pension Reform Act of 2014 (PRA 2014) and the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom), Abubakar emphasized the necessity for the government to adhere strictly to existing regulations. He stressed that pension funds should not exceed 5% of total assets for infrastructure investments.

Furthermore, Abubakar urged the federal government to explore alternative reforms to address the country’s infrastructure deficits, emphasizing the need to restore investor confidence to attract key investments without relying on the pensions of hard-working Nigerians.

He clarified that as of December 2023, total pension fund assets amounted to approximately N18 trillion, with 75% of these investments in FGN Securities. Abubakar refuted the notion of surplus pension funds beyond the 5% allocation for infrastructure investment.

Highlighting the complexities of funding infrastructure development, Abubakar emphasized the importance of introducing necessary reforms to bolster investor confidence in the Nigerian economy and leverage private resources, skills, and technology.

The federal government’s plan to harness the N20 trillion pension fund and other locally available resources for infrastructure development was unveiled earlier, with Edun stressing the significance of tapping into domestic financial resources to drive economic progress and address critical infrastructure needs.