The Organised Labour has expressed strong disapproval of the Federal Government’s plan to use the N19.66 trillion pension funds for infrastructure development. This stance was detailed in a joint letter from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) addressed to the Minister of Finance on Thursday in Abuja.
The letter, signed by NLC President Joe Ajaero and TUC Deputy President Tommy Etim-Okon, was titled “Leave our Pension Fund Alone: Do not Tamper with Workers’ Funds.”
The Labour leaders stated that the announcement has caused significant anxiety among Nigerian workers, who are the primary contributors to these funds.
"We urge the government to reconsider its plans to tap into pension funds and instead explore sustainable financing options that do not compromise the retirement security of Nigerian workers. Organised Labour will resist any action that seeks to undermine the retirement savings of Nigerian workers," the letter read.
The letter also alleged that the government has already accessed nearly 70 percent of the total pension funds, a situation described as both alarming and unacceptable. It emphasized that workers’ savings are meant for their retirement security, not for government projects.
The labour unions stressed the importance of halting any further plans to use these funds, citing past instances of lack of transparency and accountability in government borrowing practices. They raised concerns about the government's proposal to use these funds for housing and infrastructure, questioning the fiscal prudence and responsible governance of such a move.
The unions also questioned where the government plans to source the additional N20 trillion, especially given the ambiguities surrounding previous borrowing practices. This lack of clarity, they argued, only fuels skepticism about the initiative’s feasibility and sustainability.
"Nigerian workers demand assurances that their retirement funds will not be further exploited by the Federal Government. This is particularly concerning since the PENCOM Board has not been constituted as required by law. It is unclear which Board is overseeing these discussions with the government. Borrowing from the fund is not supported by the Pension Act," the letter continued.
The letter criticized the government’s lack of consultation with key stakeholders in the pension industry, noting that neither the NLC nor the TUC, who represent the owners of the pension fund contributions, were informed about the government’s intentions. This lack of transparency, they argued, undermines the sanctity of pension funds.
The unions insisted that any initiative to leverage pension funds for national development must be executed with transparency, accountability, and respect for workers’ rights and interests. They also opposed the idea of the government competing with other users of funds in the pension fund market.
"We remain resolute in our commitment to safeguarding the welfare and interests of workers across the country," the letter concluded.
