Yemisi Izuora
The Socio-Economic Rights and Accountability Project (SERAP), on Sunday, December 6, wrote to President Muhammadu Buhari, advising him to “urgently instruct the Director-General and Board of the National Pension Commission to use their statutory powers to stop the 36 state governors from borrowing and/or withdrawing N17 trillion from the pension funds purportedly for ‘infrastructural development.’”
This appeal by SERAP came in the wake of reports last week; that state governors proposed to borrow around N17 trillion from the pension funds.
This was after receiving a briefing from the Kaduna State Governor, Nasir el-Rufai, who is the Chairman of the National Economic Council Ad Hoc Committee; on Leveraging Portion of Accumulated Pension Funds for Investment in the Nigeria Sovereign Investment Authority, [NSIA].
However, in the letter signed by SERAP deputy director Kolawole Oluwadare, the organization said:“Allowing the governors to borrow from pension funds would be detrimental to the interest of the beneficiaries of the funds; especially given the vulnerability of pension funds to corruption in Nigeria; and the transparency and accountability deficits in several states.”
SERAP said: “It is patently unjust and contrary to the letter and spirit of the Nigerian Constitution 1999 [as amended]; the Pension Reform Act; and the country’s international anti-corruption and human rights obligations; for the Federal Government and state governors to repeatedly target pension funds; as an escape route from years of corruption and mismanagement; in ministries, departments and agencies [MDAs].”
SERAP expressed “serious concerns that the proposed borrowing by the 36 state governors from the pension funds would lead to serious losses of retirement savings of millions of Nigerians.”
The letter copied to the Attorney General of the Federation and Minister of Justice Mr Abubakar Malami, SAN, read in part: “Allowing the governors to borrow money from the pension funds would amount to a fundamental breach of constitutional provisions; the Pension Reform Act; and Nigeria’s international obligations; as well as fiduciary duties imposed by these legal instruments on all public officers to prevent pension funds from unduly risky investments; and to ensure transparency and accountability in the management of pension funds.
“We would be grateful if your government would indicate the measures being taken; to instruct the NPC to stop the 36 state governors; from borrowing and withdrawing any money from the pension funds; within 14 days of the receipt and/or publication of this letter.
“If we have not heard from you by then as to the steps being taken in this direction; the Registered Trustees of SERAP shall take all appropriate legal actions to compel your government; to implement these recommendations in the interest of millions of Nigerian pensioners.
“Pension funds should not be used to make up for the failure of governments at all levels to cut the cost of governance; and the persistent refusal to reduce wastage and corruption in MDAs; as well as failure to obey court orders to recover life pensions collected by former governors and their deputies, and public funds; collected by corrupt electricity contractors who disappeared with the money without executing any power projects.”