*Labour kicks as FG plans to divert funds into infrastructure development
*Says it considers such proposal as unfortunate, threat to future of Nigerian workers
*Proposal to unlock pension funds for infrastructure, increase oil production, FG insists
*Says it will strengthen existing, new domestic, foreign investments
By Onu Okorie
The Nigeria Labour Congress, NLC and the Trade Union Congress, TUC have kicked against plans by the Federal Government to divert the sum N21 trillion pension funds into infrastructural development.
The President of the Nigeria Labour Congress, NLC, Mr. Joe Ajaero while condemning the federal government’s proposal said it considers it as unfortunate and a threat to the future of Nigerian workers.
“Nigeria Labour Congress, NLC, under our leadership views with utmost anxiety the proposal by the Minister of Power, Works and Housing, that the Pension Fund be used for infrastructural development.
“All over the world, pension funds are treated with care and steps are taken by stakeholders, especially the state to ensure the continuous integrity and protection of the fund. It is shielded from the vagaries of the market and the political arena.”
“We in NLC hope that the minister is just flying a kite or is testing the waters and therefore not serious about pursuing it. Nevertheless, we make haste to say that was a very dangerous proposal that threatens the security and future of Nigerian workers.
“We demand that it be avoided before it gains ground within the corridors of power. We have to say, it is a kite for the Congress and the generality of Nigerian workers will not want to fly presently”, he said.
On its part, the Trade Union Congress condemned the funding of infrastructure projects with workers’ contributory pensions.
In a widely circulated press statement signed by Comrade Boboi Kagama and Comrade Simeso Amachree the TUC President and Acting Secretary General respectively, the trade union federation correctly pointed out that infrastructural development is a duty of the government, the burden of which should not be shifted onto the backs of poor working class-people.
TUC further pointed out that houses built by private developers including those which are supposed to be “low cost housing” are priced beyond the reach of workers. It thus called for workers to be allowed to draw loans from their Retirement Saving Accounts with single digit interest rates, for them to purchase houses.
In the statement, the TUC gave a peep into the secret of pensions as a form of “now your suffering continues” when it observed that “the 25 percent of total contribution paid at first instance to workers on retirement is too small”. It further argued that “anything less than 50 percent defeats the purpose of the scheme”.
It would be recalled that during a recent Economic Management Team EMT meeting in Abuja, the Minister of Finance and Coordinating Minister of Economy Mr Wale Edun hinted that the government is seeking to invest the pension funds in infrastructure, oil production and other uses.
Information available to Nigerian Pilot shows that the economic management team has concluded the plan to pull the fund despite the consistent opposition to the idea each time the federal government makes a move in that direction.
While confirming the development the Director of Press Federal Ministry of Finance, Mr Mohammed Manga said, “FG is seeking to unlock pension funds for infrastructure, increases in oil production, and reduction in the cost of crude oil production, while strengthening existing and new domestic and foreign investments through effective communication of the government’s economic agenda.”
