According to Edun, the government is focused on tapping into domestic financial resources, particularly pension and life insurance funds, to leverage local funds for national growth.
Former Vice President Atiku Abubakar has raised some concerns about President Bola Tinubu administration's plan to tamper with the N20 trillion pension funds to finance critical infrastructure projects across the country.
The Coordinating Minister for the Economy and Minister Of Finance, Wale Edun, on Tuesday, after the Federal Executive Council (FEC), announced that the government had unveiled a strategic plan to harness the N20 trillion pension fund and other locally available resources for infrastructure development in Nigeria.
According to Edun, the government is focused on tapping into domestic financial resources, particularly pension and life insurance funds, to leverage local funds for national growth.
He added that it was a significant step towards driving economic progress and addressing critical infrastructure needs.
Reacting to the statement, Atiku, a former presidential candidate of the Peoples Democratic Party (PDP), described the news as disturbing.
He said the move must be halted immediately. He insisted that it was a misguided initiative that could lead to disastrous consequences on the lives of Nigeria’s hard-working men and women who toiled and saved and now survive on their pensions after their retirement from service.
Atiku who took to his X (formerly Twitter) account to voice his concerns, wrote: "My attention is drawn to a disturbing disclosure by the Finance Minister and Coordinating Minister of the Economy, Wale Edun, as he addressed State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa on Tuesday, 14 May.
"There is, according to the Minister, a move by the Federal Government to rev up economic growth by unlocking N20 trillion from the nation’s pension funds and other funds to finance critical infrastructure projects across the country. The Minister has indicated that although "the initiative is expected to attract foreign investment interest over time", domestic savings are his ‘immediate focus’ for now.
"He provided no useful details, such as the percentage of the funds to be mopped up from the Pension Funds, for example. Even at that, this move must 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. The government must be cautioned to act strictly within the provisions of the Pension Reform Act of 2014 (PRA 2014), along with the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom)."
He warned the government not to act contrary to the provisions of the extant regulation on investment limits to wit: "Pension Funds can invest no more than 5% of total pension funds’ assets in infrastructure investments. I note that as of December 2023, total pension funds assets were approximately N18 Trillion, of which 75% of these are investments in FGN Securities".
He said, “There is no free Pension Fund that is more than 5% of the total value of the nation’s pension fund for Mr Edun to fiddle with.
“There are no easy ways for Mr Edun to address the challenges of funding infrastructure development in Nigeria. He can’t cut corners. He must introduce the necessary reforms to restore investor confidence in the Nigerian economy and to leverage private resources, skills, and technology.”