Pension funds are investment pools that pay for workers’ retirements. Funds are paid for by either employees, employers, or both. Corporations and all levels of government provide pensions.
On friday,the Nigeria governor’s forum endorsed two proposals to borrow a total of N17tn from two sources for infrastructural development.
The governors took the decision after receiving a briefing from the Kaduna State Governor, Mallam 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.
Figures obtained from the National Pension Commission, on Friday, showed that the total funds under the scheme stood at N11.34tn as of the end of August, out of which N7.5tn had been invested in Federal Government securities.
The Nigeria Union of Pensioners has kicked against the plan to borrow from the pension fund, reasons that the government has no authority over the money and should, therefore, not tamper with it.
What is your view about this step to be embarrassed by the government?
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