Pensioners Oppose Moves To Divert N5.2trn Pension Contribution

Michael Oche

— Feb 19, 2016 9:30 am | Leave a comment

The Nigeria Union of Pensioners (NUP) has said it will not support any attempt to divert the N5.2 trillion contributory pension savings for the purpose of infrastructural development being proposed by the minister of power, works and housing, Mr Babatunde Raji Fashola.

The union in a statement signed by its national president, Dr Abel Afolayan, and general secretary, Actor Zal, said that its fear is premised on “the fact that there is a high rate of impunity in the system.

“The corruptive tendencies of our government officials who see pension money as a gold mine and their penchant for reckless infringement on pension funds as experienced under the old pension scheme is a major issue.”

The union wondered how the government arrived at the decision to use people’s hard earned money, contributed for a specific purpose under the law for another purpose that has no backing of the law.

“The Nigerian workers, alongside other contributors, are saving their money for when they retire. For government to think of diverting such money to infrastructural development without proper safeguards is unthinkable. What will be the fate of these people when they finally retire and the money is nowhere to be found?

“The union is not totally against investing in infrastructural development per se, and if the federal government must, however, go ahead with its plan, we wish to caution here that the government must ensure that a fool-proof mechanism, such as a financial tracking system, control and accountability must be put in place in,” the statement reads in part.