BimbolaOyesola,
The organised private sector (OPS) and organised labour have warned the Federal Government against borrowing about N2 trillion from the pension fund to augment infrastructural development.
Both Nigeria Employers’ Consultative Association (NECA), representing the OPS, and the Nigeria Labour Congress (NLC) have condemned the move as unnecessary and an attempt to frustrate the future of contributors.
Speaking in Lagos recently, the director-general of NECA, Dr. Timothy Olawale, stated that “the idea of the pension fund of workers is to guarantee a meaningful and modest life after employment. It is, therefore, unacceptable for government, for whatever reason, to dip into the funds without taking into cognizance the regulations guiding investment of the pension fund and consultation with stakeholders.”
While expressing concerns over the fate of Nigerian workers in the face of incessant borrowing by government at all levels without corresponding development, the NECA DG averred that it was unthinkable for government to borrow from the pension fund when citizens have not felt the impact of the mounting debt of government.
“What is paramount to contributors and other stakeholder alike is the safety of the fund, which, unfortunately, government cannot guarantee. The action of government has the potential to threaten the scheme and erode contributors’ confidence,” he said.
Olawale noted that the pension scheme was known as the Contributory Pension Scheme, involving contributions by employers and employees, without contributions from government.
“One wonders why government would take such a fundamental decision solely, without due consultation with representatives of employers and employees – who are key stakeholders and recognised by law to be on the board of PenCom.
“We call on government to, without delay, reconstitute the board of PenCom to enable the commission perform its statutory role as enshrined in the law setting it up.
“We urge government to stop without delay any discussion relating to the use of the pension fund, as this is unnecessary, risky and unacceptable,” he said.
Olawale added that, while NECA supports investment in infrastructural development, government should rather utilise the recovered Abacha loot and other recovered/forfeited stolen funds for infrastructural development and not dip into the pension fund.
The Nigeria Labour Congress (NLC), at its National Administrative Council meeting last Tuesday, resolved that the Federal Government should immediately shelve the idea of borrowing N2 trillion pension funds to fund the restoration of its infrastructure, as it has the potential for undermining the integrity of the Contributory Pension Scheme.
The NLC also warned that the action may also set the stage for bringing it at par with the Defined Benefit Scheme whose failure necessitated the introduction of the Contributory Scheme.
The council equally urged government to reconstitute the board of PenCom, in line with the provisions of the act setting it up.
The workers’ body further resolved to be vigilant as well as watch over the pension funds in the interest of workers.