The Centre for Pension Right Advocacy has said that the funds under the Contributory Pension Scheme are meant to be invested and not borrowed.
The group said this in a statement by the Director, Ivor Takor, while reacting to the government’s plas to borrow pension funds for infrastructure.
He said, “We are stating categorically without any fear of contradiction that the pension fund is about investment and not borrowing. Pension Fund Administrators are investing organisations and not borrowing organisations.
“The spirit and letters of the Pension Reform Act 2014 envisage investment not borrowing. The government, National Pension Commission and pension operators know this very well.”
He stated that it was aware that a committee was currently studying and working out modalities of how a huge sum of funds could be invested in infrastructure.
“To us at the centre, we see the development as a welcome one because the law and guidelines for investment of pension fund make provisions for investment in infrastructure,” he said.
The group advised that critical stakeholders in the industry, especially workers who were the owners of the funds, were being carried along through their representatives, the industrial unions, the Nigeria Labour Congress and the Trade Union Congress.