The House of Representatives has unanimously decided to investigate the status of pension funds and work towards recovering the N10 trillion loaned to the federal government.
This resolution came after Rep. Aliyu Misau (PDP-Bauchi State) sponsored a motion during the Tuesday plenary.
In his motion, Mr. Misau emphasized the critical role Retirement Saving Accounts (RSAs) play in providing for pensioners’ needs post-retirement. He pointed out that despite adhering to the contributory pension scheme’s requirements, many pensioners struggle to access their retirement funds.
He further noted that both the National Pension Commission (PenCom) and the Pension Fund Administrators (PFAs) have not effectively ensured the timely disbursement of entitlements.
“Aware that the pension fund assets which PenCom regulates, being the proceeds of the contributory pension scheme and returns on investment, stood at more than N15.5 trillion at the close of the first quarter of 2023,
“There is no justification for retirees not to have access to their RSA; worried that critical stakeholders have expressed concern that 65 per cent of the funds, which amount to N10 trillion, loaned to the federal government is an investment which exposes the contributors to unnecessary volatility as the federal government may fail to pay back the loan in due time.
Being unable to access their pension has caused untold hardship to the retirees as they are unable to afford even basic necessities,” he said.
The house urged PenCom to ensure the immediate release of funds to pay pension funds to all retirees in the country.
In his ruling, Deputy Speaker Benjamin Kalu mandated the Committee on Pension to investigate the status of the pension fund assets of over N15.5 trillion.
He said the aim is to ensure that the N10 trillion loaned to the federal government from pension funds is duly recovered, and modalities are put in place to hinder a collapse of the scheme.
He mandated the committee to also scrutinise the failure of PFAs in fulfilling its obligations to retirees regarding access to their retirement savings.
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