Emmanuel OchayiThe House of Representatives has unanimously voted to launch an inquiry into the status of pension funds and take action to retrieve the staggering N10 trillion that was lent to the Federal Government.
This decision comes after a compelling motion presented by Aliyu Misau (PDP-Bauchi State) during Tuesday’s plenary session.
Misau, emphasizing the critical role of Retirement Saving Accounts (RSAs) as the financial lifeline for pensioners, declared, “It’s high time we ensure that our retirees can access the funds they’ve diligently contributed to over the years.”
He pointed out that many pensioners, despite meeting the criteria of the contributory pension scheme, face formidable obstacles when trying to access their retirement savings.
“There is no justification for retirees not to have access to their RSA,” Misau exclaimed, noting that pension fund assets, regulated by PenCom, exceeded N15.5 trillion at the close of the first quarter of 2023.
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“The concern is that 65 percent of these funds, amounting to N10 trillion, were loaned to the Federal Government, exposing contributors to unnecessary volatility if the government fails to repay the loan promptly,” he added.
The inability to access their pensions, Misau argued, has inflicted severe hardships on retirees, making it difficult for them to afford basic necessities.
In response to Misau’s motion, the legislative assembly has taken decisive action, urging the government to guarantee the immediate release of funds required for pension payments to all retirees across the country.
Deputy Speaker Benjamin Kalu, while delivering his ruling, mandated the pension committee to investigate the state of pension fund assets, which currently exceed N15.5 trillion.
He emphasized that the primary objective was to recover the N10 trillion lent to the Federal Government from pension funds and to establish preventive measures to safeguard the initiative.
Furthermore, the committee is tasked with assessing how Pension Fund Administrators (PFAs) have fallen short in fulfilling their commitments to retirees in terms of providing access to their retirement funds.
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