New Telegraph

February 24, 2024

Labour flays govs’ plan to borrow pension funds

Organised labour under the platform of Association of Senior Civil Servants of Nigeria (ASCSN) has condemned plans by states governors to siphon some amount of money from workers’ pension funds. Stating labour’s position on the raging issues, the ASCSN Secretary-General, Comrade Alade Bashir Lawal, regret-ted that the governors, some of whom their states have not contributed a dime to the pension funds were now desperate to collect out of it to massage their insatiable greed.

It urged the National Pension Commission (PenCom) not to release any money from the pension funds to the governors under the guise of loan or face the wrath of millions of Nigerian workers. According to the ASCSN, citing information from Pen- Com, as at June 2020, only four states of the federation and the Federal Capital Territory had reasonable level of compliance in pension fund contributions.

”Although 25 states have issued legislation on Contributory Pension Scheme, only four states namely Osun, Lagos, Delta, and Kaduna are in high compliance of remittance to PenCom. “In states that have pension schemes, retirees are not paid their benefits two to six years after exiting service,” the union regretted. The ASCSN wondered what rate of interest would be paid on the loan, how would the loan be recovered, and what collateral would be provided.

It expressed worry that governors, some of whom collect about ₦1billion monthly as security votes could not plough such funds into infrastructural development but instead were insisting on liquidating pension funds of workers they have denied any meaningful dividend of democracy over the years.

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