Nigeria’s government borrows N6.16tn from N8.499tn pension fund

Nigeria’s government borrows N6.16tn from N8.499tn pension fund

- The federal government of Nigeria reportedly borrows N6.16 trillion out of the N8.49 trillion pension fund

- The new report says the Pension Fund Administrators (PFAs) also invested 6.87% of the fund or N584.321 billion in domestic ordinary shares

- The acting director-general, PenCom, Aisha Dahir-Umar, speaks about developments in the organisation

The federal government of Nigeria has reportedly borrowed N6.16 trillion of the N8.49 trillion made by the country’s pension funds so far as at the end of November 2018 financial period, according to figures from the National Pension Commission (NPC).

The Punch reports that the pension commission said 72.5 percent of the fund had been borrowed by the government and invested in the FGN securities totalling N6.16 trillion at the period.

The report said the Pension Fund Administrators (PFAs) also invested 6.87% of the fund or N584.321 billion in domestic ordinary shares while N60.529 billion of the fund was invested in foreign ordinary shares.

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The acting director-general, PenCom, Aisha Dahir-Umar, reportedly said to promote a stable and sustainable pension industry, the agency adopted zero tolerance for non-compliance and consultative supervisory philosophy in the issuance of guidelines and the review of existing ones.

This, she said, is to further promote sound corporate governance in the industry and ensure the security of the pension assets.

“We believe this will promote better risk management in licensed pension operators,” she said adding that the commission released the framework and guidelines for the implementation of the micro-pension scheme in 2018.

“Similarly, circulars on pension enhancement and processing procedures of deceased benefits entitlement were also released by the commission,” she said adding that the monitoring and reporting of non-compliance remained part of the responsibilities of the compliance officers.

Legit.ng earlier reported that some unidentified fraudsters under the disguise of being relatives of workers and retirees with the Contributory Pension Scheme have been approaching Pension Fund Administrators to collect the pensions of contributors.

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According to information obtained from the National Pension Commission, the fraudsters, who have been deceiving the PFAs with fake documents, have successfully collected the pension benefits of some living workers and retirees after providing ‘evidences’ that they are dead.

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Source: Legit.ng

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