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Nigerian governors planning to borrow N17trn from pension fund – SERAP

Socio-Financial Rights and Accountability Venture (SERAP) has urged President Muhammadu Buhari to instruct the Nationwide Pension Fee (NPC) to cease state governors from borrowing N17 trillion from pension funds.

The governors had stated the cash could be used for infrastructural growth.

They made the proposal after a briefing from Kaduna State Governor, Nasir el-Rufai, Chairman of the Nationwide Financial Council Advert Hoc Committee on Leveraging Portion of Amassed Pension Funds for Funding within the Nigeria Sovereign Funding Authority (NSIA).

A letter dated December 5, 2020, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, warned Buhari that approval of the governors’ request could be detrimental to the fund beneficiaries, given the corruption in Nigeria, and transparency deficit in a number of states.

The group stated it’s opposite to the Nigerian Structure 1999 (as amended), the Pension Reform Act, and the worldwide anti-corruption and human rights obligations for federal and state governments to make use of pension funds as an escape route from years of mismanagement.

The letter copied the Lawyer Normal of the Federation and Minister of Justice, Abubakar Malami.

SERAP famous that it will be very tough to carry governors to account for the spending of pension funds, as states have persistently did not account for the spending of public funds together with safety votes.

“Pension funds shouldn’t be used to make up for the failure of governments to chop the price of governance, persistent refusal to cut back corruption, failure to obey courtroom orders to get well life pensions collected by former governors and their deputies, and public funds collected by corrupt electrical energy contractors who disappeared with the cash.

“Many state governors have repeatedly did not pay employees’ salaries and pensions; a number of states are failing to pay contributory pension. Permitting state governors to gather a windfall of pension funds on the expense of pensioners who proceed to be denied the fruit of their labour would quantity to double jeopardy.”

SERAP gave the Buhari administration 14 days to point the measures being taken to instruct the NPC to cease the governors’ transfer.

The rights group threatened authorized motion if their demand shouldn’t be met on the finish of the ultimatum.