Nigeria: Civil servants association warns against using pension funds

ASCSN had reportedly warned National Pension Commission (PenCom) on approving funds to the governors in the guise of loans from these pension funds as that can lead to provoke the wrath of Nigerian workers.

The borrowing plan of N17 trillion from workers' pension funds in Nigeria has been opposed by the Association of Senior Civil Servants of Nigeria (ASCSN), according to a report by The Guardian.

Making a statement on the plan by state governors, Alade Lawal, the ASCSN Secretary-General, expressed wonder that why the governors of some states who didn't contribute to the funds are showing interest in borrowing.

ASCSN had reportedly warned National Pension Commission (PenCom) on approving funds to the governors in the guise of loans from these pension funds as that can lead to provoke the wrath of Nigerian workers.

The association reminded these governors of pension benefits since they are meant to pay retirement benefits to the employers after serving for years.

Timothy Olawale, the Director-General of NECA, said:

"we have no reason to believe that the relevant extant laws (PRA 2004 and 2014) and the investment regulations won't be adhered to by the pension funds administrators (PFAs) and PENCOM, the regulatory body. As long as any decision to invest part of the pension fund assets are strictly based on the provisions of the PRA 2014 and existing regulations of investment, which guarantee safety, transparency, fair valuation and thus removing all ambiguity, there won't be any need for concern, at all."