- Joe Aligbe (National Vice President, Association of Senior Civil Servants of Nigeria)
It is not a bad thing to borrow from the pension fund, but why we kick against it is that there are no safety nets; there is no guarantee that the government will pay back as and when due. However, in economics, it makes no sense to have idle funds. Funds such as the trillions of naira we have in pension savings should be invested. Whether the Federal Government is borrowing or not, the expectation is that it is following the rules.
There are guidelines that govern the utilisation of these pension funds. If the pension administrators ensure that these rules are followed before the release of such funds to government, then there are no problems; it is welcome. Why the (labour) unions will always kick against government borrowing these funds is that we do not trust government to deliver on its…
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