The intention of the Federal Government to borrow N 2 trillion from the N10 trillion accumulated pension fund is incorrect as the fund cannot be borrowed by law, a pension expert, Ivor Takor has said.
Takor, who is the Director, Centre for Pension Right Advocacy, made this known in a submission by advocacy group on alleging that the Federal Government intend to borrow the huge cash from pension fund to develop infrastructure.
He stated that pension fund is about investment and not borrowing, adding that Pension Fund Administrators (PFAs) are investing organisations and not borrowing organisations.
He maintained that the N10 trillion Fund is not warehoused in any account of the National Pension Commission (PenCom), the Central Bank of Nigeria (CBN), the PFAs or Pension Fund Custodians.
The fund, he said, is warehoused in the private individual Retirement Savings Accounts (RSAs) of contributors, who are workers cum beneficiaries.
He said part of the centre’s submission is that the Contributory Pension Scheme (CPS) has created a huge pool of long term investable fund, which should be utilised for infrastructural development but it should be done within an agreed framework put in place by all critical stakeholders