By Victor Ahiuma-Young

A former member of the House of Representatives and retired unionist, Joseph Akinlaja, has warned that pension funds must not be diverted to fund public infrastructure under any guise.

Akinlaja, a former Deputy President of the Nigeria Labour Congress (NLC) and former General Secretary of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), decried ongoing suggestions that the Federal Government is exploring ways to use part of the accumulated pension assets to finance infrastructure projects.

Speaking in Lagos, he advised the government to abandon such ideas to prevent negative consequences for Nigerian retirees.

According to him: “The government must adhere strictly to the provisions of the Pension Reform Act of 2014 and the revised regulations by the National Pension Commission (PenCom). Accountability, transparency, fiscal discipline, and the rule of law must not be compromised.

“While I respect this government, we must recognize that many Nigerians are skeptical about the alleged plans to use pension funds for infrastructure. Public funds have been looted in the past, and even when recovered, they weren’t always used judiciously. In developed countries, pension funds may be loaned to the government, but only under strict terms and with guaranteed repayment. Here, workers retire at different times — so those funds must remain secure and accessible.”

He recalled the challenges before the 2004 reforms: “Before 2004, public service pensions were non-contributory and subject to budget vagaries. As a result, many retirees suffered despite having served the nation. That’s why the contributory scheme was introduced — to end such suffering.

“Pensioners once collapsed and died while queuing for payments. Some even protested in Abuja for months. We must never return to those dark days.”

Akinlaja explained how the private sector previously managed pensions through actuarial companies, with contributions generating dividends over time. These companies ensured safety and profitability of the funds.”Under the 2004 Pension Reform Act, Pension Fund Administrators (PFAs) were introduced to manage funds for both sectors, while the National Pension Commission was created for oversight. This system was designed for transparency and timely payments.

“Now, unless disrupted by bureaucracy, retirees should receive their payments promptly. If the government touches pension funds and fails to repay, it would be a betrayal of trust. The government should seek other means to finance infrastructure.”