Organised labour has warned the Federal Government against going ahead with its intention to withdraw about N20 trillion from the pension funds for infrastructural development.
Noting that labour remains resolute in its commitment to safeguarding the welfare and interests of workers across the country, the trade unions urged the government to reconsider its plans to tap further into pension funds, saying it should rather explore sustainable financing options that do not compromise the retirement security of Nigerian workers.
In a joint statement by the President of Nigeria Labour Congress (NLC), Joe Ajaero, and Deputy President of the Trade Union Congress of Nigeria (TUC), Dr. Tommy Okon, labour lamented that the revelation that the government has already accessed nearly 70 per cent of the entire pension funds value was not merely alarming but also utterly unacceptable.
They said Nigerian workers have entrusted their hard-earned savings for retirement security and not as a means for government projects.
According to them, it is imperative to halt any further plans to tap into the funds, especially given the lack of transparency and accountability in past government borrowing practices.
They stressed that the recent announcement has ignited deep apprehension and unrest among Nigerian workers, who are the primary contributors and eventual beneficiaries of the funds.
They stated that despite government’s assurances of widespread consultation with major stakeholders in the pension industry, the NLC and TUC, representing the owners of the entire pension funds contributions, had neither been consulted nor informed about the government’s intentions.
This lack of transparency, they maintained, undermines the sanctity of the pension funds, which should be treated with the utmost reverence and protection at all times.
They argued that the government’s proposal to further leverage the funds for the purported betterment of housing and infrastructural sectors raises serious questions about fiscal prudence and responsible governance.
They wondered where the government intends to source the additional N20 trillion it seeks to acquire, especially considering the ambiguity surrounding previous borrowing practices.
According to them, the lack of clarity on the matter only fuels skepticism regarding the feasibility and sustainability of the initiative.
They said that Nigerian workers rightfully demand assurances that their retirement funds would not fall victim to further Federal Government borrowing especially when the PenCom Board has not been constituted as envisaged by the statutes; wondering which board superintends over such discussion with the government, as seeking to borrow from the fund is not backed by the Pension Act.
They therefore insisted that it was incumbent on the government to prioritise alternative sources of funding that do not imperil the financial security of Nigerian workers.
“Any initiative aimed at leveraging pension funds for national development must be executed with utmost transparency, accountability and respect for the rights and interests of workers,” they noted.
