The Federation Account Allocation Committee (FAAC) announced that the federal, state, and local governments shared N1.2 trillion for April, 2024. This information was disclosed in a communiqué released at the conclusion of the May 2024 FAAC meeting by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), on Thursday.

The allocation for April represents an increase of N85 billion compared to the N1.12 trillion distributed in March. The breakdown of the N1.2 trillion includes N284 billion in distributable statutory revenue, N466 billion in distributable value-added tax (VAT) revenue, N18 billion from the electronic money transfer levy (EMTL), and N438 billion from exchange difference revenue.

FAAC reported that the total revenue available in April 2024 was N2.1 trillion. Deductions included N80 billion for the cost of collection and N903 billion for transfers, interventions, and refunds. Gross statutory revenue for April was N1.2 trillion, which is N216 billion more than the N1.01 trillion received in March. VAT gross revenue was N500 billion, down by N48 billion from the N549 billion recorded in March.

From the N1.2 trillion total distributable revenue, the federal government received N390 billion, states received N403 billion, and local governments got N293 billion. Additionally, N120 billion was distributed to states as 13 percent derivation revenue.

Out of the N284 billion in distributable statutory revenue, the federal government received N112 billion, states got N56 billion, and local governments received N43 billion, with N71 billion allocated as derivation revenue to the states.

From the N466 billion in distributable VAT revenue, the federal government received N69 billion, states received N233 billion, and local governments got N163 billion. The N18 billion EMTL revenue was divided with the federal government getting N2.704 billion, states N9 billion, and local governments N6 billion.

Regarding the N438 billion exchange difference revenue, the federal government received N205 billion, states got N104 billion, and local governments received N80 billion, with N48 billion distributed as 13 percent derivation revenue to the benefiting states.

FAAC also noted significant increases in oil and gas royalties, companies’ income tax (CIT), excise duty, petroleum profit tax (PPT), EMTL, and CET levies in April. However, import duty and VAT saw considerable decreases. The balance in the excess crude account (ECA) for April was $473,754.

The speakers of Nigeria’s 36 state houses of assembly have endorsed the national assembly's efforts to establish state police. This decision was outlined in a communiqué released after the Conference of Speakers of State Legislatures met in Abuja on Thursday. The communiqué was signed by Adebo Ogundoyin, Speaker of the Oyo House of Assembly and Chairman of the Conference.

The speakers believe that state policing would address the growing insecurity in the country. "To achieve this, the Conference appeals to the National Assembly, Presidency, and other relevant stakeholders to leverage the ongoing constitution review exercise," the communiqué stated.

Both chambers of the national assembly are currently working to amend the 1999 Constitution to include provisions for state police.

Despite this support, last month, Inspector-General of Police Kayode Egbetokun expressed concerns that Nigeria is not yet “mature” for state police.

On February 15, the federal government established a committee to explore the creation of state police. Mohammed Idris, Minister of Information and National Orientation, announced that President Bola Tinubu and state governors had agreed on the framework for the concept.

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.

The Nigerian Education Loan Fund (NELFUND) has announced that its student loan application portal will officially open on May 24, 2024. Akintunde Sawyerr, Managing Director of NELFUND, made this announcement in a statement on Thursday, marking a significant step toward making education more accessible and inclusive for all Nigerian students.

"Through the portal, students can now access loans to pursue their academic aspirations without financial constraints," Sawyerr stated. The announcement, signed by Nasir Ayitogo, the Fund’s Media and Public Relations Lead, emphasized that the portal offers a user-friendly interface for students to conveniently submit their loan applications.

"We encourage all eligible students to take advantage of this opportunity to invest in their future and contribute to the growth and development of our nation," the statement added.

Students can access the portal at www.nelf.gov.ng to begin their applications. For assistance, they can contact the Fund via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or through their social media handles.

US House votes to force weapons shipments to Israel, rebuking Biden

The Republican-led U.S. House of Representatives passed a bill on Thursday that would force President Joe Biden to send weapons to Israel, seeking to rebuke the Democrat for delaying bomb shipments as he urges Israel to do more to protect civilians during its war with Hamas.

The Israel Security Assistance Support Act was approved 224 to 187, largely along party lines. Sixteen Democrats joined most Republicans in voting yes, and three Republicans joined most Democrats in opposing the measure.

The act is not expected to become law, but its passage underscored the deep U.S. election-year divide over Israel policy as Prime Minister Benjamin Netanyahu's government seeks to wipe out militants who attacked Israel on Oct. 7, killing around 1,200 people and seizing 253 hostages, according to Israeli tallies.

Palestinian authorities say at least 35,272 civilians have been killed during Israel's campaign in Gaza. Malnutrition is widespread and much of the population of the coastal enclave has been left homeless, with infrastructure destroyed.

Republicans accused Biden of turning his back on Israel after facing widespread pro-Palestinian protests.

"This is a catastrophic decision with global implications. It is obviously being done as a political calculation, and we cannot let this stand," Republican House Speaker Mike Johnson told a news conference with other party leaders on Wednesday.

Democrats also accused the other party of playing politics, saying Republicans are distorting Biden's position on Israel.

"It is not a serious effort at legislation, which is why some of the most pro-Israel members of the House Democratic caucus will be voting no," House Democratic Leader Hakeem Jeffries told a news conference before the vote.

Israel, a major recipient of U.S. military assistance for decades, is still due to get billions of dollars of U.S. weaponry, despite the delay of one shipment of 2,000-pound (907-kg) and 500-pound bombs and the review of other weapons shipments by the Biden administration.

As recently as Tuesday, the State Department had moved a $1 billion package of weapons aid for Israel into the congressional review process, U.S. officials said.

Reuters

WESTERN PERSPECTIVE

Zelenskiy visits Ukraine's embattled Kharkiv as Russian pressure mounts in east

Ukrainian President Volodymyr Zelenskiy visited the northeastern city of Kharkiv on Thursday to boost morale and reinforce troops in the region where Russian forces are trying to press their new offensive beyond border areas.

Moscow has made inroads of at least several kilometres into the north of Kharkiv region since Friday, forcing Kyiv's outmanned troops to try to hold the line on a new front as Russia mounts more pressure on the front in the east.

"The direction remains extremely difficult - we are strengthening our units," Zelenskiy said after holding a meeting in Kharkiv, Ukraine's second-largest city, with his top commander and senior military leaders.

Later, in his nightly video address, Zelenskiy said that thanks to the actions of Ukrainian forces "we have achieved more certainty" near Vovchansk, 5 km (three miles) inside the border.

"But the Russian shelling is not stopping, threats persist." he said.

Kharkiv regional governor Oleh Syniehubov, speaking on national television, said Russian forces were still bent on capturing the town.

"While we cannot say that our soldiers have yet stabilised the front line, they have already stopped the active advance of the enemy in Kharkiv region," he said. In some places, he said, Ukrainian troops had regained earlier positions.

The Ukrainian leader, who has cancelled his upcoming foreign trips as the battlefield situation deteriorates, met wounded soldiers recovering at a medical facility and posed for photographs with troops at another location.

TROOPS STRETCHED OVER LONG FRONT LINE

Apart from inflicting devastation on frontline settlements and dealing a blow to Kyiv's morale, Russia's Kharkiv push is a headache for Ukrainian war planners whose troops are already stretched over a more than 1,000-km line.

Ukraine's military said late on Wednesday that its forces fighting near the town of Kupiansk - some 85 km southeast of Kharkiv - were pulling back to more "advantageous positions".

In a statement on Thursday, the General Staff said Russia was directing its most intense assaults on the front near the cities of Pokrovsk and Kramatorsk in the eastern Donetsk region, where Russia's offensive has been unrelenting for months.

Russian President Vladimir Putin said on Wednesday that Moscow's forces were improving their positions "every day" along the front in Ukraine and that the advance was going to plan.

After reporting fighting in Vovchansk, some 45 km from the city of Kharkiv, the Ukrainian General Staff said its troops had launched a counterattack to hit back at the invaders.

Kyiv, whose shortages of manpower have been compounded by delays to Western arms supplies, has warned that Russia may be preparing for a big offensive in the coming weeks. It has flagged a Russian buildup of small units near its Sumy region.

Pasi Paroinen, an analyst with the Black Bird Group, told Reuters that Moscow's Kharkiv push looked aimed at drawing in Kyiv's limited reserves into battle before an offensive begins.

"If Ukraine overcommits in Kharkiv and Sumy, they may preserve some territory there, perhaps prevent Kharkiv civilians from suffering artillery bombardments, perhaps even push back the enemy back to the border," he said.

"But it may cost them the war, if the reserves are not available to respond to crises during the Russian summer offensive."

Kharkiv, 30 km from the border, has been pounded for months by airstrikes that defenders struggle to stop with depleted air defences.

Russian forces have pressed two thrusts into the region, one towards Vovchansk and the other towards the village of Lyptsi, 17 km from the northern outskirts of Kharkiv.

Ukraine has scrambled to evacuate civilians from the town and other border areas - about 9,000 people have left so far.

Ukrainian Interior Minister Ihor Klymenko accused Russian forces of killing a resident in Vovchansk who tried to escape on foot and refused to obey their orders.

Serhii Bolvinov, head of the investigative department of the regional police, said in televised comments that Russian troops had taken up to 40 civilians captive. Local prosecutors reported four dead and 12 injured in the area.

Reuters was unable to immediately verify Klymenko's or Bolvinov's accounts.

Russia says it has taken control of 12 villages since it launched its attack. Russia's defence ministry said on Thursday its forces had advanced into Ukraine's defences and inflicted personnel and hardware losses near Vovchansk and Lyptsi.

RUSSIAN PERSPECTIVE

Zelensky blames ‘whole world’ for Ukraine’s failures in Kharkov

The whole world is to blame for Ukraine’s failure to stop Russia’s recent advances in Kharkov Region and must now help Kiev to change the situation, President Vladimir Zelensky told ABC News in an interview on Thursday.

It comes after Russian forces managed to capture several settlements near Ukraine’s second-largest city over the past week. Top military officials in Kiev have admitted that the situation is now “extremely difficult,” and that Ukrainian troops are struggling to hold ground due to being outgunned and outnumbered.

Asked if he believes Ukraine’s failures on the battlefield to be the fault of the US, Zelensky told ABC reporters that “it’s the world’s fault,” and accused the international community of giving “the opportunity for Putin to occupy.”

The Ukrainian leader said the country “cannot afford to lose Kharkov,”and that “the world can help” Kiev to hold on to the vital city in the country’s northeast.

“All we need are two Patriot systems,” Zelensky said, suggesting that “Russia will not be able to occupy Kharkov if we have those.”

The president also complained that funding that has been approved by the US for Kiev is not actually reaching the country and is instead being spent “in American factories, creating American jobs.”

Meanwhile, US Secretary of State Antony Blinken, who visited Kiev this week, assured the Ukrainian leadership that Washington was “actively and urgently” trying to source billion-dollar Patriot air defense systems for Ukraine. Last month, Zelensky insisted that Ukraine needs 25 such batteries but later revised that number to “at least seven.”

Each Patriot battery comprises a power plant, radar and control stations, truck-mounted missile launchers, and support vehicles, and costs around $1 billion. Ukraine is currently believed to possess at least three Patriots, one of which is stationed near the capital. Last year, one of these batteries was reportedly damaged or destroyed in a Russian hypersonic missile strike.

Moscow, meanwhile, has repeatedly stated that no amount of Western weapon systems can change the inevitable outcome of the conflict, and has warned that continuing to arm Ukraine will only prolong the bloodshed and increase the risk of a direct confrontation between Russia and NATO.

Reuters/RT

I was chatting with a friend last week, who, mid-speech, redirected our conversation to the situation in the Middle East. She wanted to know what the mood in the US was. Over 6,000 miles away in Nigeria from where she was calling, she didn’t quite trust the media accounts. Since I was visiting the US, she thought I might have a better reading of the pulse.

Her call coincided with the decision by Israeli President, Benjamin Netanyahu, to launch a ground offensive in Rafah, in spite of warnings about compounding the current humanitarian disaster in Gaza where over 32,000 Palestinians have been killed, not counting bodies still under the rubble.

No one is sure how many more dead would be counted before Netanyahu finds the last Hamas, but is there still a chance – just one chance – that the dog in this deadly hunt will hear the hunter’s restraining whistle? Is the US unable or unwilling or both unable and unwilling to call Netanyahu to stop?

Calling America

I told the caller that the honest answer was I don’t know. The mood on US campuses was clear. Students from Columbia to Yale and from Harvard to New York and University of Texas at Austin, pitched tents outside for days in running battles with the police to demand an end to the war. They wanted the Biden administration to call Netanyahu to order. 

There were counter-protests, alright, but the overwhelming majority of students across US college campuses made their voices loud and clear: Israel had gone too far in avenging October 7. 

That was the mood on the campuses. 

It wasn’t very different on the streets, too. You could say that is to be expected. Two of three cab drivers I used were persons with Arab roots who wore their grief on their sleeves. 

They were not all Hamas sympathisers; just ordinary folks who might still have remained in Palestine under better leadership, but in whose eyes the worst Palestine leaders now look like saints, thanks to Israel’s ruthless war in Gaza. But you don’t have to be Arab or Jew or Greek to ask, who can stop Netanyahu? You just have to be human to see that if two wrongs don’t make a right, a third only compounds it.

So, who does the US listen to and why does it matter in the war in Gaza? In politico-speak those who move the hand that moves the most powerful country in the world are called the “military-industrial complex.” 

Who’s the Complex?

This is how Meta AI defines it: “The military-industrial complex (MIC) refers to the interconnected network of relationships between the military, defense contractors, and the federal government. It involves the collaboration and cooperation between these entities to produce and profit from military weapons, equipment and services.

“The term was first used by President Dwight D. Eisenhower in his farewell address in 1961, where he warned of the potential dangers of an unchecked alliance between the military, defence contractors and politicians.”

If there’s anyone who ought to know that a threesome involving the military, defence contractors and politicians can hardly end in any good, it was Eisenhower. He was on two of the three sides; and Dick Cheney who became Vice President decades later, was on the last two - defence contractor and politician. 

Eisenhower led two of the most consequential military campaigns in the Second World War, before he later became president.

This Complex is not large. In number terms, it would be a tiny fraction of the number of college students who besieged dozens of campuses last week, calling for an end to the war in Gaza. Statistics in 2009 suggested that it includes around 1,100 lobbyists who represent about 400 clients from the defence sector, mostly companies that make losses from peace.  

Size matters not

But you would be mistaken to judge its influence by its size. Although it accounted for about three percent of the US GDP two years ago, these folks famous mostly for their notorious exploits, with strong ties to the Jewish lobby, have been linked with nearly every bad thing from the overthrow and murder of radical Chilean president Salvadore Allende Gossens to the Vietnam War and from the Iran-Contra Affair to Gulf War I & II. 

As bad things go, the last one was the baddest. This Complex instigated the US invasion of Iraq in spite of all evidence to the contrary. It made up its own convenient evidence, bomb after bomb, as hundreds of lives were destroyed and centuries of civilisation in Mesopotamia was pillaged and ruined.

After the war, one of the last surviving White House peaceniks, Barack Obama, said, in a declassified document: “ISIS (Islamic State), is a direct outgrowth of Al Qaeda in Iraq that grew out of our invasion, which is an example of unintended consequences – which is why we should generally aim before we shoot.” Unfortunately, even Obama the Dove shot before aiming in Libya.

In the Middle East, the Complex has President Biden by the balls. That was what I told the caller from Nigeria. It doesn’t matter what the students are saying on college campuses or what the cab drivers think; the Complex has Biden by the balls. And what a hold they have on him and on anyone in the White House in an election year! The Complex has got Israel’s back. Biden is damned if he calls out Netanyahu. Damned if he doesn’t. 

Owners of America

That’s what I told the caller. The Igbo of Southeastern Nigeria have a profound way of saying it that is lacking in the English language: “Ana enwe obodo enwe!” A town is owned and the owners call the shots. It’s a hard thing to say, even harder, perhaps, to accept. Because the logic of accepting that the Complex owns America and has its ear, is to deny the agency of actors within the system who may hold different, even stridently opposing views.

But think of it this way: why would America, a beacon of the rule of law, conveniently hide under its non-signatory status to ICJ to allow Israel to continue bombarding Gaza in spite of warnings by the court and the UN of an impending humanitarian catastrophe? Why would Biden, who regretted voting for the War in Iraq, and who as President, has prioritised diplomacy, become so impotent over Gaza? It’s the Complex, folks! They’ve got him by the balls in an election year!

And Netanyahu knows this, as does large sections of the Western media largely controlled by vested interests in the Middle East conflict. Netanyahu knows that Israel’s invincibility is an American yarn. The students said that much in their placards and graffiti last week, but who’s listening? 

Certainly not Biden, who along with his British ally, Rishi Sunak, scrambled military assets to defend Israel on April 15, when Iran launched what might otherwise have been a devastating retaliatory attack on Israel? The yarn of Israel’s invincibility, largely overplayed in the Western media, continues to feed the war. For how long? How many more lives before enough is enough?

What price, peace?

On the whole, the world is in a far more peaceful place today than it was in the 20th century when millions of people died from senseless, bloody conflicts over ego and territory. Yet, it has taken bloody hard work to bring us here, where prosperity is not only measured by the Complex’s profit from wars, but also by how many ordinary folks around the world have bread on their table and milk for their babies.

Now, it seems like from South Sudan to Yemen and from the meat grinder in Ukraine to Gaza, the world is adrift again, one war at a time, as America defies the voices of its own children.

Someone must stop, listen and act. If not Biden, then who?

** Ishiekwene is Editor-In-Chief of LEADERSHIP

On Friday afternoon, on the floor of the annual meeting of Berkshire Hathaway shareholders, I ran into my seatmate from the flight from Washington, D.C. to Omaha — a lovely woman working the Geico booth.

“Bill Murray is here,” she told me. I told her I’d keep my eyes peeled.

Of course, to the tens of thousands of shareholders who flock each year to Nebraska, Murray, or any other celebrity, is second fiddle to the real star of the show, Warren Buffett, and in years past his right-hand man Charlie Munger, who died in 2023.

Around these parts, the honchos at Berkshire do have one key thing in common with Murray: everyone who’s met them seems to have a story.

Earlier on Friday, I attended VALUEx BRK one of the many gatherings of investors that crop up around Omaha as sort of satellite Berkshire meetings. Run by Guy Spier, manager of the Zurich-based Aquamarine Fund, the event featured talks from a wide array of value investing enthusiasts, from investment managers to academics to authors to Munger’s longtime assistant Doerthe Obert.

Just about everyone who had encountered one of the Berkshire luminaries shared some of the wisdom they imparted. Here’s what you can learn from their stories.

Choose the right partner

Monsoon Pabrai, managing partner and portfolio manager of Drew Investment Research, recalled a lunch where she and her sister — both young girls at the time — sat on either side of Buffett. She took careful note of the three-and-a-half-hour conversation, but tends to return to one piece of advice.

“The one that always stuck with me was that he looked me and my sister in the eye, because we’re women, or young girls, and said, ‘The most important decision you make is who you marry,’” she said. “I think that goes for both partners in a marriage. It’s really important who you pick to be your life partner.”

Indeed, it’s advice that Buffett echoed at the shareholder meeting on Saturday.

In response to a question about advice everyone needs to hear, Buffett urged shareholders to think about the way they’d like their obituaries to read and to pursue life accordingly. “Certainly in my day it would have been marrying the person who could help you do that,” he said.

Give yourself some inspiration… and accountability

William Green, author of “The Great Minds of Investing” spoke alongside photographer Michael O’Brien about the experience of profiling and photographing Munger.

An encounter with his friend, Berkshire board member Chris Davis, reminded him of a key piece of advice from Munger: surround yourself with images of your idols.

“Charlie told him very early on, put photos of people you admire in your office, because they’re people you don’t want to disappoint.”

Munger famously owned a bust of his hero, Benjamin Franklin, Green noted. Green, in turn, has a bust of Munger.

“I think this idea of structuring your physical environment to have pictures of people you admire is a really good hack. It’s tilting the odds of you behaving decently,” Green said.

Make time for yourself

Gillian Segal, author of “Getting There: A Book of Mentors” spoke about her persistence in nailing down an interview with Buffett. After failing to get through to him remotely, she pinned him down at a charity event, where he agreed to lend her a few minutes of his time.

When it came time to schedule their meeting, Segal was in for a surprise.

“Once I had gotten in past [Buffett’s assistant], she was telling me all of the available times, and it was like, ‘OK, this week he’s available Monday,’ and it was a huge block of time. Tuesday, huge block of time, Wednesday, he has this. Thursday, huge block of time,” she says. “And I just realized he is who he is because he guards his time. And he has time to do the important things. He’s not overscheduled.”

Chances are, you don’t have nearly as many people as Buffett does asking for your time – or an assistant who is an expert at guarding it. But it’s an example that’s useful for anyone: To be successful in your career, you’ll need time to give it your undivided attention.

Stay in your lane

Munger’s longtime assistant Doerthe Obert told a litany of charming, personal stories about Munger, from his focus on his work to his attempts at dieting.

Her recollections of her working relationship with Munger are instructive for anyone who has employees. “We had such a good working relationship, and he just trusted me completely,” she said. “You’ll handle it – whatever it was. You’ll get it done.”

Trusting his assistant to do her work let Munger do his.

And when it came to the working relationship, Munger was happy to stay in his lane, too.

When I asked her what, if anything her boss taught her about investing, Obert demurred.

“He never talked to anybody about investing once,” she told me.

Never? Not even in passing?

“No. Because if he gave some advice and it [might not] work out,” she said. “If he loses some money, it’s not so bad. But if I would lose a lot? He didn’t want that responsibility.”

CNBC

The federal government has announced a strategic plan to utilize the N20 trillion pension fund, alongside other domestic resources, for infrastructure development in Nigeria. This initiative was disclosed by Wale Edun, the coordinating minister for the economy and finance, after a federal executive council (FEC) meeting chaired by President Bola Tinubu.

Edun emphasized the government's focus on leveraging domestic financial resources, particularly pension and life insurance funds, to foster national growth. He highlighted the potential to channel over N20 trillion available domestically into critical sectors like housing and long-term mortgage provision.

As part of the plan, the government aims to address Nigeria’s estimated 20 million housing deficit by providing significant housing and mortgage loans at 12 percent interest rates, with 25-year repayment plans. Edun pointed out that before seeking foreign investments, it is prudent to utilize the available long-term funds within Nigeria’s pension and life insurance sectors.

He explained that pension funds are long-term savings, which makes them suitable for funding infrastructure projects. The initiative will be executed in collaboration with the private sector, ensuring the expertise and capacity necessary for such projects are harnessed.

Initially, the government will offer support, especially during periods of high interest rates, but as rates decline, its involvement will decrease. This plan aims to leverage substantial domestic funds in partnership with the private sector to drive economic growth.

The construction industry will benefit from funded housing projects, and Nigerians will gain access to affordable mortgages through their pension savings. This comprehensive approach aims to boost the construction industry and provide significant economic benefits.

This initiative echoes a similar plan by former President Muhammadu Buhari, who also aimed to use pension funds for infrastructure development. However, Buhari’s proposal faced significant resistance from the Nigerian labour movement and other stakeholders. Concerns were raised about the security and safety of workers' retirement savings, with critics arguing that mismanagement or failure of infrastructure projects could jeopardize these funds.

Despite these challenges, the current administration is pressing forward, seeking to address past concerns through robust safeguards and collaboration with the private sector. Edun concluded by expressing confidence in the initiative, highlighting the collaboration of Nigeria’s top talents in achieving these infrastructure and economic growth goals.

Former Vice President Atiku Abubakar has raised concerns over the announcement by the federal government regarding the use of pension funds for infrastructure development. Speaking out against the initiative, Abubakar warned that tapping into the N20 trillion pension fund could breach the Pension Reform Act of 2014.

The controversy arose following a statement by Wale Edun, the Finance Minister and Coordinating Minister of the Economy, after a Federal Executive Council (FEC) meeting on May 14. Edun disclosed the government’s plan to unlock pension funds and other domestic resources to finance critical infrastructure projects across Nigeria. He emphasized the focus on domestic savings, though he mentioned the potential for attracting foreign investment in the future.

Abubakar criticized the lack of specifics in Edun's disclosure, particularly the absence of details on the percentage of pension funds to be allocated for these projects. He argued that such a move is not only misguided but could have severe consequences for retirees who rely on their pension savings.

“This move must be halted immediately! It is a misguided initiative that could lead to disastrous consequences on the lives of Nigeria’s hardworking men and women who toiled and saved and who now survive on their pensions having retired from service,” Abubakar stated.

He urged the government to adhere strictly to the Pension Reform Act and the revised Regulation on Investment of Pension Assets issued by the National Pension Commission (PenCom). According to these regulations, pension funds can invest no more than 5% of their total assets in infrastructure projects. With total pension fund assets around N18 trillion as of December 2023, Abubakar noted that a significant portion is already invested in federal government securities.

“There is NO free Pension Funds that is more than 5% of the total value of the nation's pension fund for Edun to fiddle with,” he emphasized.

Abubakar concluded by calling on Edun to find alternative solutions for funding infrastructure without compromising pension funds. He stressed the need for economic reforms to restore investor confidence and leverage private resources, skills, and technology for sustainable development.

Abubakar served as Vice President of Nigeria from 1999 to 2007 and was the presidential candidate for the Peoples Democratic Party in 2023.