Former Vice-President Atiku Abubakar has strongly opposed the federal government's proposal to utilize Nigeria's pension fund for infrastructure development.
In a statement on Wednesday, Atiku criticized the plan as misguided and urged for its immediate cessation.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had announced on Tuesday, May 14, that the government intended to tap into the N20 trillion pension fund and other domestically available resources to support infrastructure projects in the country, emphasizing its potential to drive economic progress and address critical infrastructure needs.
Expressing concern, Atiku cautioned that this decision could have severe repercussions on the lives of hardworking Nigerians who depend on their pensions after retiring from service. He highlighted the need for the government to strictly adhere to the provisions of the Pension Reform Act of 2014 and the revised Regulation on Investment of Pension Funds Assets issued by the National Pension Commission (PenCom).
Atiku also emphasized that the government must not contravene the existing regulation on investment limits, which allows pension funds to invest no more than 5% of their total assets in infrastructure investments.
While acknowledging the challenges of funding infrastructure development, Atiku suggested that the government should instead focus on implementing necessary reforms to rebuild investor confidence in the Nigerian economy and leverage private resources, skills, and technology.
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