Dyepkazah Shibayan, Abuja
The House of Representatives on Wednesday mandated its committees on Pensions, Finance, Capital market and Institutions to interface with the National Pension Commission and other stakeholders in view of investing pension funds in infrastructural facilities.
The resolution by the House followed a motion entitled “need to invest pension funds to meet Nigeria’s infrastructural challenges” sponsored by Hon. Yusuf Tajudeen.
While moving the motion on the floor of the House, the Law Maker said that in most countries in Europe, Asia and America, pension funds are usually invested in provision of infrastructure as a means to regenerate the funds and grow the economy.
Tajudeen said that in over one decade of the implementation of the Pension Reform Act, Pension funds have amounted to about five trillion naira mainly domiciled in commercial banks as free funds, and characterized by low investment returns.
“In over one decade of the implementation of the Pension Reform Act, the National Pension Commission has accumulated about N5 trillion which is mainly in the vaults of commercial banks as free funds.
“In most countries of Europe, Asia and America, pension funds are usually invested in provision of infrastructure as a means to regenerate the funds, grow the economy, sustain meaningful development and meet the needs of citizenry, “he told the House.
The House said the consequences of taking foreign loans and facilities to address infrastructure demands will be to the detriment of the economy.
The House adopted the motion after it was put to a voice vote by its Speaker, Hon. Yakubu Dogara.