Inviting a curse

May 27, 2024

By NICK DAZANG

IN the immediate aftermath of a meeting of the Federal Executive Council, FEC, on Tuesday, May 14, 2024, the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, announced, with brio, that government had concluded plans to deploy N20 trillion pension funds and others to drive economic growth via investment in infrastructure and other endeavours. This announcement was greeted with consternation and an outpouring of outrage. The Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, joined other patriotic Nigerians to express their indignation. 

In a letter addressed to the government, jointly signed by the President of the NLC, Joe Ajaero, and the Deputy President of the TUC, Tommy Etim-Okon, the two unions asserted: ”It is imperative to halt any plans to tap into these funds given the lack of transparency and accountability in past government borrowing practices. Your proposal to further leverage these funds…raises questions about fiscal prudence and responsible governance”

Following the anger expressed by the unions, notable Nigerians and the media, the Minister of Finance made an about turn on Thursday, May 16, 2024. He said that: ”It has come to my notice that there are stories making the rounds that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be further from the truth. The pension industry, like most of the financial industry, is highly regulated. There are rules and well laid out limitations about what pension fund assets can be invested in, and what it cannot be invested in”.

This narrative, which verges both on the surreal and paradoxical, brings to the fore a number of salient observations which are so pivotal that they must be brought to the upper reaches of public discussion and scrutiny. First, this is supposedly an honourable Minister disclaiming, in fact eating the words he had uttered, in the hallowed precincts of the Presidential Villa and in the full glare of the media. And this he did, grotesquely, within the space of one week! Second, it is international best practice that pension funds are viewed with sanctity and treated with utmost care. Consequently, and following the recklessness of such buccaneers as Robert Maxwell, the late British media maven, who used pension funds to shore up the shares of the Mirror Group Newspapers, pension funds are invested only in iron-clad and safe havens. They are often invested in areas that add value such as stocks, treasury bills, bonds, real estate, gold and other securities which can hedge inflation. 

In fact, the areas in which pension funds can be invested in our clime are succinctly captured in the 16-page Pension Act. Did the Minister of Finance and members of FEC not avert or inform themselves of this Act before he proceeded to regale us with his tale of deploying pension funds to drive economic growth?

Third, the very act of attempting to raid pension funds without due diligence, as aforementioned, and without consultation with stakeholders, is not only astounding, it beggars belief. Both the NLC and the TUC were not consulted. And they said so in vehement, unmistakable and damning terms in their letter. Neither do we have it on record that other unions related to civil servants and pensioners were consulted. 

Fourth, it is noteworthy that this lack of consultation, which smacks either of lack of thoroughness or speaks to haughtiness, defines the conduct of government on President Tinubu’s watch. Recall his impulsive and cavalier withdrawal of fuel subsidy without as much as a concomitant plan on how to mitigate its adverse consequences. 

Recall, also, the arbitrary and bizarre increase of electricity tariff, which was not informed by consultation with stakeholders, except of course, the distribution companies, DISCOs, which stood to gain directly by it.

Fifth, it should occur to a leader who has some measure or modicum of compassion that pension funds are sacrosanct because they are, not only hard-earned but belong to Nigerians in the evening of their earthly existence. These are Senior Citizens who are delicate and vulnerable. These funds can therefore not be subjected to the vagaries of a gamble or uncertainty. Vulnerability of the pensioners and the urgent need to succour them is worsened by a withering and unprecedented inflation. This nibbles acutely at the stipend that eventually accrues to these retirees.

It is unfortunate, in the light of the above, that the government had no qualms or did not suffer any twinge of conscience in its botched attempt to latch onto these funds and to deploy them on some addle-brained  economic growth. 

The odiousness of this is best exemplified by the parable of the extremely rich person who commandeered the only sheep of a poor man to entertain his guest rendered to King David by Nathan. King David had commandeered the comely wife of one of his committed commanders after he had ordered that he be posted to the hottest theater of war where he died. King David, by so doing, invited divine curse and retribution.

Sixth, this absurd quest to cart away pension funds speaks to an unfathomable recklessness which only this government is capable. In its desperation, it seems this government does not have any scruples or restraint. It is prepared to ransack pantheons. Nothing is sacred. And nothing is sacrosanct.

Seventh, compounding recklessness, the government’s proposal speaks eloquently to intellectual indolence. Why can’t the government or its economic team devise other measures to drive the economy, especially those that do not imperil vulnerable Nigerians? 

Eighth, the recourse to pension funds, apart from suggesting intellectual laziness, does underscore the fact that this government acts, most of the time, on impulse and brainwaves. Policies are not given elaborate or profound thought. Neither are they muscularly debated or given well-rounded consideration, informed by data and far-reaching ramifications. Policies are merely articulated and implemented on the fly.

Ninth, Nigerians must stand, as one, and insist that this government, or any other government for that matter, should not access these pension funds. Neither should it be allowed to corral those who superintend over them to hand the funds over. In this one year, government has demonstrated an abject lack of transparency, consistency and respect for Nigerians. Neither has it shown coherence in its thoughts and actions. These are serious failings. They call for eagle-eyed vigilance and steadfastness on the part of all Nigerians.

Dazang, a public affairs analyst, wrote from Abuja