Labour rejects bid to borrow from N17tr pension fund

Labour unions have rejected a fresh bid by governors to borrow from the N17 trillion pension funds.

The Nigeria Labour Congress (NLC) kicked against a similar proposal by Works and Housing Minister Babatunde Fashola to deploy workers’ retirement benefits being managed by Pension Fund Administrators (PFAs) in the development of infrastructure.

The NLC vowed to mobilise workers nationwide to protest any move to borrow from the money, saying it was the retirement benefit of workers.

NLC President Ayuba Wabba spoke on the rejection at the 47th National Executive Council (NEC) meeting of the Medical and Health Workers’ Union of Nigeria (MHWUN) in Abuja.

The Nigerian Governors’ Forum (NGF) had endorsed two proposals to borrow N17 trillion from two sources for infrastructural development.

They took the decision after receiving a briefing from Kaduna State Governor Nasir El-Rufai, who is the Chairman of the National Economic Council Ad Hoc Committee on Leveraging Portion of Accumulated Pension Funds for Investment in the Nigeria Sovereign Investment Authority.

El-Rufai told the Forum on proposed National Infrastructure Investment Fund that N2 trillion at nine per cent interest could be accessed through the NSIA.

In his keynote remarks at the Nigerian pension industry retreat, Fashola said the growing nature of pension funds in Africa had not translated into a better quality of life for the contributors.

According to him, the accumulated pension funds could be invested in the provision of infrastructure.

He said pension reforms were beginning to gain foothold across African countries, adding that there is no corresponding impact on the continent, despite growing pension funds and rising number of contributors.

Fashola said: “The impact on the quality of life on the continent is not yet anywhere near minimum globally acceptable standards.

“No country to country rail service across most parts of these countries; the highways that connect most of the countries are in a very poor shape.

“These are roads that can easily be built and tolled to earn income to secure the return of pension funds invested in building them.’’

The minister said that pension funds could be invested in the construction of roads and building of rail, among other critical infrastructure.