The House of Representatives has directed the National Pension Commission (PenCom) to recover the N10 trillion loan given to the Federal Government from the nation’s pension fund.
The House also resolved to investigate the status of pension fund assets of over N15.5trillion to ensure recovery of the loan.
Adopting a motion by a member from Bauchi state, Aliyu Bappa-Misau, the House urged pension regulators to scrutinize the failure of Pension Fund Administrators (PFAs) in fulfilling their obligations on Retirement Saving Accounts.
The lawmaker stated that the Retirement Saving Accounts (RSAs) is the lifeline that pensioners rely upon to cater for their needs on retirement.
He expressed concern that most pensioners are unable to access their retirement funds, despite complying with the requirements of the contributory pension scheme.
The Lawmaker added that the inability of pensioners to access their pension has caused untold hardship to them, making it difficult for them to afford basic necessities.
“Neither the PenCom nor the PFAs have been able to reassure pensioners of getting their entitlements without stress. Modalities should be put in place to prevent a collapse of the scheme.
“The pension fund assets, which PenCom regulates, being the proceeds of the Contributory Pension Scheme and returns on investment, stood at more than 15.5trillion as at the close of the first quarter of 2023.
He said critical stakeholders have expressed concern that 65% of the pension funds (N10 trillion) loaned to the Federal Government is an investment which exposes the contributors to unnecessary volatility.
According to him, the Federal Government may fail to pay back the loan in due time.
