Goment plan to borrow N20 trillion Pension fund – why pension fund?

Di plan of goment to use N20 trillion from di pension fund and oda locally available resources for infrastructure development do dey go well wit Nigerians.

Dis na afta di Coordinating minister for di economy and minister of finance, Wale Edun tok say na part of dia strategic plan to develop infrastructure for Nigeria.

Oga Wale Edun tell tori pipo afta di Federal Executive Council end on Tuesday.

Im explain say goment focus na to tap into di financial resources wey Nigeria get locally.

Di local resources na mainly di pension and life insurance funds wey dem wan use for "national growth".

Im add say na significant step to push di economic progress and also face important infrastructure for di kontri.

Dis tori no sweet di belle of some Nigerians at all.

Dem dey para sake of say evritime na pipo wey dey work and save for dia future na im goment dey go borrow money from.

Former Vice President Atiku Abubakar respond sharply to wetin di Minister of Finance tok.

Di 2023 Presidential candidate for di Peoples Democratic Party (PDP) say di plan dey "illegal" according to law. Atiku add say oga Wale Edun no give useful details

"According to di Minister, di initiative dey expected to attract foreign investment interest over time", domestic savings na im ‘immediate focus’ for now.

Im no provide any useful details, like di percentage of di funds wey dem go collect from di Pension Funds, for example.

"Dem need to stop dis move immediately! Na misguided initiative wey fit lead to disastrous consequences on di lives of Nigeria hardworking men and women wey toil and save and wey go now survive on dia pensions wen dem don retire from service.

"Na anoda attempt wey di Federal Government wan use do illegality. "

Atiku add say dem need to caution goment to act strictly witin di provisions of di Pension Reform Act of 2014 (PRA 2014), along wit di revised Regulation on Investment of Pension Assets wey di National Pension Commission (PenCom) issue.

E say make goment no act contrary to di provisions of di extant Regulation on investment limits to wit: wey tok say dem no fit invest Pension Funds wey dey more dan 5% of total pension funds’ assets in infrastructure investments.

Nigerians wey chook mouth for di mata for social media platform X say e fit deyhard for pensioners to get dia full benefits.

Some also drag Atiku Abubakar as dem tok say im no suppose chook mouth foir di mata

Why Goment dey always borrow pension money?

Dis question na wetin dey for plenti Nigerians mind, why na workers money goment like to chook hand.

BBC News Pidgin follow one financial expert Seyi Kolawole tok. Oga Seyi tell BBC Pidgin say goment dey go dia sake of say di money dey available.

"Oda options dey but na di one wey dey most accessible, na money wey no dey needed for years to com, so all tins being equal di pensioners go stay alive long enough"

Dis pension money wey goment dey borrowed wetin be di impact and how e fit affect pensioners for future?

Oga Kolawole tell BBC Pidgin say "E no get any major impact, as long as goment return di money from wia dem take am from.

Im explain say if goment put di money to good use, di money suppose to dey grow.

"Di money suppose to dey accumulate interest and accounting for inflation if dem no touch am.

Di only issue na wen di goment no make good use of di money like bad investments and poor return.

And if gomet no fit return am afta dem borrow am na dia kasala go dey between goment and di pensioners.

But if evritin go well and goment return di money wit interest wey don dey ontop, evribody suppose to dey happy".

Wetin dem wan use di money do

According to Edun, wit di over N20 trillion available funds for di kontri, beta chance dey to channel di resources to important sectors like housing and long-term mortgage.

Im add say na part of goment plan to close di gap for wey dey for Nigeria housing wey get an estimate of 20 million housing deficits and e go help dem provide massive housing and mortgage loans wit 12 percent interest rates wey pipo fit pay back for 25-years.

How many times goment don borrow pension money?

Dis no be di first time goment dey chook hand inside di money wey workers dey save for dia future.

Dis retirement saving na be only goment dey bring o, na 'contributory' wey mean say goment go bring some and you sef go bring some part.

For 2019, di Pension commission tell local media say federal Goment bin borrow 72.5 per cent of di pension fund and dem invest am for di FGN securities wey total N6.16tn during di period.

Di Pension Fund Administrators bin also invest 6.87 per cent or N584.321bn of di money for domestic ordinary shares.

Dem also invest 0.71 or N60.529bn of di fund for foreign ordinary shares.

Local media also report say for 2017 federal Goment bin borrow N5 trillion from di N7.3 trillion pension funds wey dem don save since 2004.

According to reports na new roads, repair of railways, and to repair electricity wahala dem na im goment bin use di money do.

For October, 2015 former Govnor of Edo State, Adams Oshiomhole bin accuse former President Goodluck Jonathan say im bin chook hand inside di pension funds wey be almost N3.7 trillion.

For October, 2023 Di lower parliament for Nigeria bin conclude say dem go try to recover di N10 trillion pension funds wey Federal Goment bin borrow

Di resolution come afta one lawmaker say most pensioners no get access to dia retirement funds even though dem bin don comply wit all di requirements of di contributory pension scheme.

Dis na some of di fear wey Nigerians get about di money , if and wen goment go pay back.