Stakeholders condemn govt’s move to finance infrastructure from N20tr pension fund

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National Pension Commission News

PENCOM,Pension Funds,Segun Ajibola

Economists and securities experts have reacted angrily to the Federal Government’s plan to deduct N20 trillion from pension funds for infrastructure development, saying government has no business with the investment returns of citizens.

The Federal Government, apparently in dire need of cheap funds to finance its huge infrastructure deficit currently put at $3 trillion, had disclosed plans to pull N20 trillion from pension funds to finance infrastructure.

Of the N19.5 trillion, N12.14 trillion was invested in FGN securities of which bonds attracted N11.59 trillion; treasury bills N221.81 billion; agency bonds N14.86 billion; Sukuk bonds N124.89 billion and green bonds N181.57 billion. Over 80 per cent of pension fund assets have been invested in its securities.

Professor of Economics at Babcock University, Segun Ajibola, said the pension fund is a trust fund and the trustees of the fund owe a sacred duty of protecting the laws governing the operation of the funds. Indications have emerged that governors of the ruling All Progressives Congress are prevailing on President Bola Tinubu to sacrifice the party’s national chairman and former governor of Kano State, Abdullahi Ganduje, and allow for his replacement from any of the states in the North Central zone.

President Bola Tinubu, yesterday, inaugurated three gas projects, reassuring investors in the energy sector of his administration's resolve to enhance the business environment and investment convenience.

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