Hon. (Comrade) Joseph Iranola Akinlaja, a former Deputy President of the Nigeria Labour Congress (NLC) and ex-General Secretary of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), has strongly opposed the proposal by President Bola Tinubu’s administration to channel over ₦22 trillion from pension funds into national infrastructure projects.
During a media interaction at his Lagos home on Thursday, May 8, 2025, Akinlaja stressed that pension funds are designated strictly for the retirement benefits of Nigerian workers and must not be diverted for government projects.
The seasoned labour activist, who also served two terms in the Federal House of Representatives, emphasized the potential risks such a policy poses to retirees who rely heavily on these funds after their working years. According to him, the public remains skeptical about the government’s ability to manage such funds prudently, given the history of misappropriated public resources in Nigeria.
He urged the federal government to adhere strictly to the stipulations of the Pension Reform Act of 2014 and the National Pension Commission’s (PenCom) guidelines on the investment of pension assets. He insisted that transparency, fiscal discipline, and respect for the rule of law must guide all actions concerning pension funds.
“Although I hold this government in high regard, we must not ignore the concerns of many Nigerians who question the integrity of any plan to utilize pension funds for infrastructure,” Akinlaja said. “We’ve seen how public money has been misused in the past, and even recovered loot has often failed to benefit the people.”
Drawing comparisons with advanced economies, he acknowledged that governments abroad sometimes borrow pension funds to finance infrastructure—but only under strict regulatory oversight and with clear repayment terms. He warned that Nigeria must not adopt such policies without robust safeguards.
Reflecting on the evolution of Nigeria’s pension system, Akinlaja recalled the pre-2003 era when public sector workers operated under a non-contributory scheme that was unreliable and subject to government budget fluctuations. “Back then, many retirees were subjected to unimaginable suffering,” he noted, describing how some died while waiting in long queues for their pensions.
He praised the efforts of labour unions, particularly the NLC, in pushing for the adoption of the contributory pension scheme which allowed both public and private sector workers to benefit from structured retirement plans. In the private sector, these funds were managed by actuarial firms that generated returns for the workers.
Eventually, the system evolved to involve Pension Fund Administrators (PFAs), selected by workers, under the regulatory watch of the National Pension Commission (PenCom). This model, established under the 2004 Pension Reform Act, was designed to ensure safe custody and timely disbursement of pensions and gratuities.
Akinlaja expressed outright rejection of any move by the federal government to tap into pension funds without a guaranteed and transparent repayment plan.
“If the government is not ready to ensure full accountability and repayment, it should stay away from pension funds altogether,” he warned. “These funds belong to aging and vulnerable citizens. Using them irresponsibly would amount to a betrayal of trust and would leave retirees with no financial cushion.”
He further pointed out that several government ministries and departments have already failed to remit their required contributions to the pension pool, increasing public distrust.
“In light of this deficit in trust and existing defaults by MDAs, it would be wiser for the government to explore alternative funding sources for infrastructure rather than endanger the livelihoods of retired workers,” Akinlaja concluded.