NEC Targets N2trn Pension Fund For Infrastructural Devt
The National Economic Council on Thursday considered the possibility of investing N2tn out of the Contributory Pensions Fund on infrastructure development in the country.
This will be done through the Sovereign Investment Authority.
A sub-committee of NEC presented an interim report on the proposal to the 100th NEC held at the Presidential Villa, Abuja.
The session, which was chaired by Vice-President Yemi Osinbajo, had state governors, Governor of the Central Bank of Nigeria, Minister of Finance/Budget/National Planning and other stakeholders in attendance.
The meeting, after reviewing the interim report, called for the submission of the final report in January, 2020.
The Governor of Kebbi State, Mr Atiku Bagudu, who spoke on the deliberations at NEC, said other countries, including South Africa and Saudi Arabia, used a portion of their pensions on infrastructure development.
Under the Pensions Reform Act, up to 20 per cent of the fund is allowed to be invested on infrastructure.
Bagudu said the sub-committee observed that only N169bn was provided for roads in the 2019 budget, an amount he described as “grossly inadequate.”
Another sub-committee of NEC chaired by the Governor of Kaduna State, Nasir el-Rufai, also submitted an interim report.
Bagudu gave details, “You will recall also that at the 99th NEC meeting, NEC discussed that since the privatisation of the DisCos, that at least 40 per cent that was meant to be for the state governments and federal government have not been so distributed.
“They presented an interim report that they are meeting soon to review the various information provided by the various agencies; then they will brief the counsel further.”