A financial investor, Mr Tunji
Busari, has urged the Federal Government to urgently review the nation’s
contributory pension scheme, saying it was not meeting the desires of
the contributors.
Busari told the News Agency of Nigeria (NAN) on Sunday in Lagos the government should see how the pension fund could be restructured to allow workers enjoy more of the fruits of their labour.
According to him, the entire Pension Administration Law of 2014 is not explicit enough on the profits made through investments by the Pension Fund Administrators (PFAs).
He spoke to NAN against the backdrop of the plan by Kosofe Local Government and Entreprenovate Nigeria in partnerships with Leadway Assurance and MOYDAK Construction to sensitise civil servants on investments.
NAN reports that the theme of the sensitisation programme which will hold from June 22 to June 23, at the council’s headquarters is “Life after Retirement and Life as a Self-Employed 2017’’.
Busari, a lawyer, claimed that he had conducted researches on the pension administration and found some lacuna on the investments and who should be the beneficiary of the profits.
“I want to categorically inform the public, especially the workers that the newly endorsed pension scheme that we are operating in Nigeria is nothing but a fraud.
“I have conducted researches regarding the scheme and I discovered that every month every worker participating in the scheme has an amount deducted from his salary and placed in a pool of money for re-investment.
“Some money are deducted overtime like 10 to 30 years and whatever is been deducted will be given back to the worker as savings at the expiration of his years of service.
“I mean to say no to this exploitation, it shouldn’t be that way, those contributing the money should not be savers, but investors or partners to the business their money is invested in,’’ he said.
Busari said that money deducted from the workers on the account of pension scheme were being channelled to a viable investments which yield higher dividends than the returns paid to the owners.
“The pension fund administration does not own the money they are using for investments; they got it from the workers, so why are they short-changing them.
“Investors source for money from them which is large enough to service an economy because the cash is an elastic one with a determined and fixed date of return on investment.
“Some of the money were also channelled toward some other ventures and businesses and they get commissions here and there.
“The question is; what will the workers get at the end of the day? At least if we have fixed deposit money in the bank we expect a handsome interest,’’ he said.
Busari said that the way people borrow money from bank and get interests on the loan should be applicable to the money deposited for pension.
“If we go to the bank to borrow money, won’t we pay interest? The same thing applies here; they are pooling other people’s resources together in the name of pension.
“They will use the money for quite a long time and this money will not be given back to them in bulk. Note that inflation must have affected the money too.
“They get a large chunk of money and claim it is for precautionary motive thereby tagging it as savings. It is a fraud of the highest order. The workers are losing.
“Workers should be seen as investors not savers. The pension fund administrators are just behaving like capitalists,’’ he said.
“I implore the government to address the lopsidedness of the pension scheme to help workers that have been denied their rights to have a new lease on life.
“We will channel our grievances to the National Assembly to seek for the economic justice for the average Nigerian worker that has been exploited over the years.
“The owner of the money should enjoy the largest percentage of the profit not those that are managing the money on their behalf.
“Workers should be paid according to what they have contributed and not referred to as a mere savers, that is wrong because they are using the money for particular businesses.’’ (NAN)
Busari told the News Agency of Nigeria (NAN) on Sunday in Lagos the government should see how the pension fund could be restructured to allow workers enjoy more of the fruits of their labour.
According to him, the entire Pension Administration Law of 2014 is not explicit enough on the profits made through investments by the Pension Fund Administrators (PFAs).
He spoke to NAN against the backdrop of the plan by Kosofe Local Government and Entreprenovate Nigeria in partnerships with Leadway Assurance and MOYDAK Construction to sensitise civil servants on investments.
NAN reports that the theme of the sensitisation programme which will hold from June 22 to June 23, at the council’s headquarters is “Life after Retirement and Life as a Self-Employed 2017’’.
Busari, a lawyer, claimed that he had conducted researches on the pension administration and found some lacuna on the investments and who should be the beneficiary of the profits.
“I want to categorically inform the public, especially the workers that the newly endorsed pension scheme that we are operating in Nigeria is nothing but a fraud.
“I have conducted researches regarding the scheme and I discovered that every month every worker participating in the scheme has an amount deducted from his salary and placed in a pool of money for re-investment.
“Some money are deducted overtime like 10 to 30 years and whatever is been deducted will be given back to the worker as savings at the expiration of his years of service.
“I mean to say no to this exploitation, it shouldn’t be that way, those contributing the money should not be savers, but investors or partners to the business their money is invested in,’’ he said.
Busari said that money deducted from the workers on the account of pension scheme were being channelled to a viable investments which yield higher dividends than the returns paid to the owners.
“The pension fund administration does not own the money they are using for investments; they got it from the workers, so why are they short-changing them.
“Investors source for money from them which is large enough to service an economy because the cash is an elastic one with a determined and fixed date of return on investment.
“Some of the money were also channelled toward some other ventures and businesses and they get commissions here and there.
“The question is; what will the workers get at the end of the day? At least if we have fixed deposit money in the bank we expect a handsome interest,’’ he said.
Busari said that the way people borrow money from bank and get interests on the loan should be applicable to the money deposited for pension.
“If we go to the bank to borrow money, won’t we pay interest? The same thing applies here; they are pooling other people’s resources together in the name of pension.
“They will use the money for quite a long time and this money will not be given back to them in bulk. Note that inflation must have affected the money too.
“They get a large chunk of money and claim it is for precautionary motive thereby tagging it as savings. It is a fraud of the highest order. The workers are losing.
“Workers should be seen as investors not savers. The pension fund administrators are just behaving like capitalists,’’ he said.
“I implore the government to address the lopsidedness of the pension scheme to help workers that have been denied their rights to have a new lease on life.
“We will channel our grievances to the National Assembly to seek for the economic justice for the average Nigerian worker that has been exploited over the years.
“The owner of the money should enjoy the largest percentage of the profit not those that are managing the money on their behalf.
“Workers should be paid according to what they have contributed and not referred to as a mere savers, that is wrong because they are using the money for particular businesses.’’ (NAN)
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