Revealed: FG Has Borrowed Over ₦6tr From Pension Funds

The Federal Government has borrowed about ₦6.16 trillion out of the ₦8.49 trillion pension assets under the Contributory Pension Scheme.

The total pension assets under the Contributory Pension Scheme rose to N8.49tn as of the end of November 2018 financial period, latest figures obtained from the National Pension Commission on Tuesday revealed. FGN has borrowed 72% N6.16trn "invested in FGN Securities"!

— Timawus Mathias (@questtim) January 16, 2019

Naija News learnt that these figures were released by the National Pension Commission (NPC) on Tuesday in Abuja, revealing the FG’s borrowing represents 73.5 percent of the pension fund.

According to data from Pencom, Pension Fund Administrators also invested 6.87 per cent or ₦584.321bn of the fund in domestic ordinary shares, while 0.71 or ₦60.529bn of the fund was invested in foreign ordinary shares.

The commission, which said that it continued its consultative philosophy in the regulation and supervision of the industry, said the risk-based examination approach was implemented as a way of promoting transparency and providing early warning signals as well as encouraging pension operators to regularly self-evaluate their positions.

They constantly accuse the PDP of wasting the country for 16 years but the FG is borrowing 6.16 tn from 8.499 tn pension fund. The contributory pension scheme /Pencom was put in place by the PDP administration

— Akor (@akorsense) January 16, 2019

Speaking on how to a achieve a stable pension sector, the Acting Director-General, PenCom, Mrs Aisha Dahir-Umar, said the commission adopted zero tolerance for non-compliance and consultative supervisory philosophy in the issuance of guidelines and the review of existing ones to further promote sound corporate governance in the industry and ensure the security of the pension assets.