Reps Move To Recover N10trn Pension Funds Loan To Federal Govt

The House of Representatives on Tuesday took steps to recover the N10 trillion loaned to the federal government from Pension Funds and put in place modalities to hinder a collapse of the pension scheme.

This was as the House adopted a motion mandating its Committee on Pensions to investigate the status of the pension fund assets of over N15.5 trillion.

Moving the motion, Hon. Aliyu Bappa Misau from Bauchi noted that Retirement Saving Accounts (RSAs) are the lifeline that pensioners rely upon to cater to their needs upon retirement.

Misau expressed concern that most pensioners are unable to access their retirement funds despite complying with the requirements of the contributory pension scheme, and neither the National Pension Commission (PenCom) nor the Pension Fund Administrators (PFAs) have been able to reassure them of prompt payment of their entitlements.

“Aware that the pension fund assets which PenCom regulates, being the proceeds of the contributory pension scheme and returns on investment, stood at more than N15.5 trillion as at the close of the first quarter of 2023, hence there is no justification for retirees not to have access to their RSA.

“Worried that critical stakeholders have expressed concern that 65 per cent of the pension funds (N10 trillion) loaned to the federal government as investments which exposes the contributors to unnecessary volatility as the federal government may fail to pay back the loan in due time.

“Also worried that being unable to access their pension has caused untold hardship to the retirees as they are unable to afford even basic necessities,” he stated.

Adopting the motion, the House urged the National Pension Commission (PenCom) to ensure the immediate release of funds for the payment of pension funds to all retirees.