FG to borrow N2trillion from the N10trillion Pension Fund to finance 2020 budget, El Rufai disclosed to press after NEC meeting in Abuja
Pension fund is the pot government keep all the deductions they take from your salary every month throughout your working years. When you retire, you would have access to this savings for the rest of your life.
Government is about to dip its hand in that money simply because they know many of the workers won’t retire in the next 30 years, so they want to borrow 20% of the savings for infrastructural projects in 2020 budget.
Meanwhile, Buhari’s government has spent over N1.7trillion on power in four years – that is a whooping $7billion US Dollars.
Where is the power?
Hear el rufai:
“In 2019 budget, N200 billion was budgeted for construction and maintenance of federal highways. In 2020, the budget is N169 billion. If we continue this way, we will never be able to fund highway infrastructure. We need to unlock funds to construct and maintain highways.
“We will never be able to construct and maintain highways with N200 billion every year. Highway infrastructure and maintenance can only be done with long term funds.”
Speaking on the rationale to borrow from the N10 trillion pension fund, El-Rufai stated that the decision followed an interim report earlier presented to the council, and the decision to borrow N2 trillion from the pension fund was in compliance with the Pension Reform Act 2004, which empowers the government to borrow 20% of the fund to address national issues.
According to him, various countries of the world such as Chile and South Africa funded their infrastructure growth by borrowing money from workers’ pension funds. El-Rufai also stated that with Nigeria’s pension funds largely dominated by youths in their 30s, who still have several years ahead of retirement, utilising the funds for infrastructure would not generate any problem.
What I your opinion on this?