Atiku Slams FG’s Plan to Tap Pension Funds for Infrastructure Projects

Former Vice President Atiku Abubakar has vehemently criticized the intentions of the Tinubu administration, particularly through its Minister of Finance, Wale Edun, to tap into pension funds to finance federal infrastructure projects.

In a scathing post on his official X handle, Atiku expressed deep concern over Finance Minister Wale Edun’s recent announcement at the State House correspondents meeting after the Federal Executive Council (FEC) session on Tuesday, 14 May.

Edun disclosed the government’s plan to unlock a staggering N20 trillion from the nation’s pension funds and other reserves to bolster economic growth and fund critical infrastructure projects across Nigeria. While emphasizing the potential attraction of foreign investments in the long run, Edun highlighted a focus on domestic savings as an immediate priority.

Atiku, however, condemned the move, citing its potential detrimental impact on retired Nigerians who rely on their hard-earned pensions for survival. He called the initiative misguided and warned of disastrous consequences if implemented.

Furthermore, Atiku urged strict adherence to the provisions of the Pension Reform Act of 2014 and the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom). He emphasized that any deviation from these regulations could constitute illegality.

Highlighting the investment limits set by existing regulations, Atiku underscored the importance of respecting the 5% cap on infrastructure investments vis-a-vis total pension assets. He noted that as of December 2023, total pension assets stood at approximately N18 trillion, with a significant portion invested in Federal Government Securities.

Atiku concluded by asserting that there are no shortcuts to addressing Nigeria’s infrastructure funding challenges. He urged Edun and the government to prioritize reforms aimed at restoring investor confidence and leveraging private resources, skills, and technology for sustainable development.