The federal government has borrowed a whopping N8.29 trillion from Pension Fund Assets which stood at N12.9 trillion at the end of August 2021, LEADERSHIP checks have revealed.

Even though an earlier attempt by the federal and state governments to borrow directly from the pension funds was met by a stiff public resistance, thus nipping the idea in the bud, the federal government has continued to dominate in utilisation of the pension pension funds’ assets, howbeit indirectly through investment in federal government securities.

The federal government, through the National Economic Council (NEC), had in 2019 announced plans to borrow N2 trillion from the pension funds to finance the development of infrastructure. The decision sparked a lot of backlash as Nigerians unanimously kicked against the move. Had the plan worked, it would have become the norm for governments to borrow directly from the pension funds.

Pension fund investment in federal government securities still accounted for the bulk of 64 per cent of total pension fund assets, crowding out investments in other sectors of the economy, even as it dropped by about N220billion from N8.51trillion in July, 2021 to N8.29 trillion as of the end of August 2021.

The drop, according to LEADERSHIP investigation, was as a result of drop in yield of bonds and treasury bills, which started last year, hence, Pension Fund Administrators (PFAs) were divesting from this investment outlet, into better investment windows that give better returns.

Pension fund operators have been seeking investment alternatives besides government bonds and treasury bills to increase returns on investment on pension assets as yields from FGN securities decline.

Hence, as the previous investment matured, pension fund operators were divesting the proceed in money and capital market instruments.

More:
https://leadership.ng/federal-govt-borrows-n8-29trn-from-n12-9trn-pension-fund/

Heyyyyy

And some people still want to vote Tinubu in 2023

Nigerians like to suffer

Lord have mercy

Buhari on borrowing spree.




Buhari and blunders.

They will pay back with their blood; you cannot borrow someone's property without his consent. That's extortion and criminal.

Rogue government.

Buhari can borrow

Buhari and APC don finish Nigeria.

Pensions gone forever ..this is outright robbery of human sweat because the govt doesn't have the capacity to pay back ever

I think it's time borrow' as a word should be removed from dictionaries and be replaced with Buhari, because there can't be Buhari without borrowing.

E.g Can You Buhari Me N5000, I'll Pay Back Next Week.

In fact, Buhari and borrowing are like beans and plantain that cannot be separated.

Buhari's government will soon start going from house to house to borrow and Unfortunately, the visible infrastructure they claim to borrow funds for, is a far cry from the volume of debt incurred.

FG and borrowing are like Siamese twins.

They never stop.

I feel sorry for Nigerians expecting any real change from the next leaders.

The country is gone.

Na mumu dey pray for Nigeria.

This is Nigeria. Anything you see, take it like that.

Hahahaha

Abeg Ooo!!

I can't kill myself

LoL

We are all in this together

All BMC urchins n ZoneBs

The. Topic should be FG STEALS FROM PENSION FUND
Because to borrow, you need a mutual agreement with the fund owner..if the pension owners agreed with interest on mutual ground THAT IS BORROWING

But when you forcefully Dip your hand into funds that is not yours

Its STEALING,
Don't replace stealing with Borrow the way they Replaced Terrorists with Bandits
Fela's song...Stealing by Government,

MANDIPUTIN:
The federal government has borrowed a whopping N8.29 trillion from Pension Fund Assets which stood at N12.9 trillion at the end of August 2021, LEADERSHIP checks have revealed.

Even though an earlier attempt by the federal and state governments to borrow directly from the pension funds was met by a stiff public resistance, thus nipping the idea in the bud, the federal government has continued to dominate in utilisation of the pension pension funds’ assets, howbeit indirectly through investment in federal government securities.

The federal government, through the National Economic Council (NEC), had in 2019 announced plans to borrow N2 trillion from the pension funds to finance the development of infrastructure. The decision sparked a lot of backlash as Nigerians unanimously kicked against the move. Had the plan worked, it would have become the norm for governments to borrow directly from the pension funds.

Pension fund investment in federal government securities still accounted for the bulk of 64 per cent of total pension fund assets, crowding out investments in other sectors of the economy, even as it dropped by about N220billion from N8.51trillion in July, 2021 to N8.29 trillion as of the end of August 2021.

The drop, according to LEADERSHIP investigation, was as a result of drop in yield of bonds and treasury bills, which started last year, hence, Pension Fund Administrators (PFAs) were divesting from this investment outlet, into better investment windows that give better returns.

Pension fund operators have been seeking investment alternatives besides government bonds and treasury bills to increase returns on investment on pension assets as yields from FGN securities decline.

Hence, as the previous investment matured, pension fund operators were divesting the proceed in money and capital market instruments.

More:
https://leadership.ng/federal-govt-borrows-n8-29trn-from-n12-9trn-pension-fund/

What is still left in this country again?

I can see any meaningful project to justify this season of borrowing o. How do the defenders of this government sleep in peace.

Senators should thank the police and DSS for the sacrifice they made so that their huge wages could be paid. Don't forget teachers and soldiers including immigration officers thank you.

that is a silly idea....

when you cant pay back,you lie to them....

its a very bad idea to play around with peoples pensions....

slimfit1:
Senators should thank the police and DSS for the sacrifice they made so that their huge wages could be paid. Don't forget teachers and soldiers including immigration officers thank you.

imagine....pensions....!!

evil basstards....!!

The good thing is that is through bonds and treasury bills, atleast this one FG can't default

Olodumare o



Aaaaahhhh



Aaaaahhhh

*opens mouth

This thing don dey develop into addiction

Theives and rogues in power

This government is just so good in borrowing .The have borrowed heavily from China and they will start increasing tax and usdt codecharge too on it's citizens .
Later the APC government will say that they are fighting against corruption and blame PDP government .
Let's not forget that Obassanjo took over from The late Abarcher who wanted to finish nigeria ,and still he was able to pay all the depts Nigeria was owing before handing over .
The truth is that what moves a nation is policy and APC government has nothing to offer only excuses.

Benbellamor:
The. Topic should be FG STEALS FROM PENSION FUND
Because to borrow, you need a mutual agreement with the fund owner..if the pension owners agreed with interest on mutual ground THAT IS BORROWING

But when you forcefully Dip your hand into funds that is not yours

Its STEALING,
Don't replace stealing with Borrow the way they Replaced Terrorists with Bandits
Fela's song...Stealing by Government,

Absolutely right, this government is just too corrupt

All of their deeds are always shady and with impunity

But their foot soldiers are always ready to defend their deficiencies.

Pension fund investment in federal government securities still accounted for the bulk of 64 per cent of total pension fund assets, crowding out investments in other sectors of the economy, even as it dropped by about N220billion from N8.51trillion in July, 2021 to N8.29 trillion as of the end of August 2021.

These quota system journalists are something.
The journalist crafted a fake headline to rile up the ignorant as usual.

It is normal for pension funds to be invested in various safe security products, in case of Nigeria,
federal offers are often preferred for their safety.

FG didn't borrow from pension, the pension administrators invested in Federal government securities
as many other Nigerians do.

It is a pity

Benbellamor:
The. Topic should be FG STEALS FROM PENSION FUND
Because to borrow, you need a mutual agreement with the fund owner..if the pension owners agreed with interest on mutual ground THAT IS BORROWING

But when you forcefully Dip your hand into funds that is not yours

Its STEALING,
Don't replace stealing with Borrow the way they Replaced Terrorists with Bandits
Fela's song...Stealing by Government,

Financial illiteracy at display.
Pension administrators not "owners" determine where the fund is invested.

In this case, the administrators invested in Federal government security which
comes with fixed interest.