New Telegraph

Atiku Kicks Against FG Plan To Borrow N20trn Pension Fund For Infrastructure Projects

Former Vice President Alhaji Atiku Abubakar has said the proposed plan by the Federal Government to use N20 trillion pension funds to unlock the economy could lead to disastrous consequences.

The Minister Finance and Coordinating Minister of the Economy Wale Edun, had told State House correspondents at the end of the Federal Executive Council (FEC) meeting on Tuesday that the money would be used to finance critical infrastructure projects across the country.

He also stated that the initiative is expected to attract foreign investment interest over time. But Atiku in a statement yesterday, faulted the move, pointing out that Edu failed to provide useful details, such as the percentage of the funds to be mopped up from the pension funds. He demanded that the move should be halted immediately.

“It is a misguided initiative that could lead to disastrous consequences on the lives of Nigeria’s hardworking men and women who toiled and saved and who now survive on their pensions having retired from service. “It is another attempt to perpetrate illegality by the Federal Government,” he said.

The former vice president advised the Federal Government to act strictly within the provisions of the Pension Reform Act of 2014 (PRA 2014), and also the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom).

He recalled that as of December 2023, total pension funds assets were approximately N18 trillion, of which 75 per cent of these are investments in Federal Government securities.

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