Fatshimetrie has taken a close look at the government’s recent proposal for the use of pension funds to finance infrastructure projects in Nigeria. This initiative, unveiled by the Minister of Finance and Coordination of the Economy, Wale Edun, provoked various reactions, notably that of former Vice-President Atiku.
While the government sees this strategy as a key way to boost economic growth and address infrastructure needs, Atiku expresses significant concerns about the potential consequences of this decision. He points out that the use of pension funds could have devastating effects on the lives of Nigerians who have worked hard to save for retirement.
Atiku insists on full compliance with the Pension Reform Act of 2014 as well as the regulations on Investment of Pension Fund Assets issued by the National Pension Commission (PenCom). He highlights the importance of not acting in contradiction with these laws, emphasizing in particular that investments in infrastructure should not exceed 5% of the total assets of pension funds.
Highlighting these points, Atiku warns of the legal and economic risks that could arise from inappropriate use of pension funds for infrastructure projects. He also recalls that transparency and respect for the law are fundamental elements to ensure the financial security and stability of the pension system in Nigeria.
In conclusion, the government’s proposal to mobilize pension funds to finance infrastructure raises legitimate questions and raises debates on the best way to support the country’s economic development. Striking a balance between investing in infrastructure and protecting the interests of retired citizens is crucial to ensuring a stable and prosperous financial future for all.