Governors Forced Me Not To Save Excess Crude Oil Sales, Obasanjo Speaks On Recession
Former President Olusegun Obasanjo has given a graphic description of how the governors with whom he operated forced him not to save for what he called ‘rainy day’ when the price of crude oil was high and money was flowing in.
Accusing the former governors of being the major contributors to the present economic recession in the country, when he spoke at the 2016 World Pension Summit in Abuja today, Tuesday, Obasanjo lamented that many of the former state executives frustrated his genuine attempt to save a substantial portion of the country’s resources when there was excess oil revenue.
Obasanjo said, at the event which was attended by global pension players and top government officials: “I remember when I was in government and I told, particularly, the governors, ‘please let us save for the rainy days.’ They said no!
“There was no rain at that time, now that the rain has come; there is nothing we can fall back on to cushion us.”
Obasanjo, however, commended the secured nature of the pension scheme, stating that despite the many years of sleaze in the Nigerian polity, the pension funds were not touched.
“One of the things that make me very happy in the pension scheme is that in the last five years, when almost everything goes, concerning public funds, pension funds remain sacrosanct. I believe that the pension funds are something we must preserve, no matter what we do.”
Obasanjo however called for caution in introducing innovations into the pension scheme to ensure that the ability of people to access their pension funds when they retire is not jeopardized.
this was even as the nation’ s Head of Service of the Federation, Mrs. Winifred Oyo-Ita, said that Nigeria’s Contributory Pension Scheme had generated over N5.8 trillion assets as at 30th June 2016.
Oyo-Ita said the summit would enable countries and stakeholders to brainstorm on how to tackle their economic challenges.
“Nigeria in 2004 established contributory pension scheme due to its advantages such as sustainability as a system with framework that would eliminate incentives for corruption.
“Also, It is noteworthy that within 12 years of implementing contributory pension scheme in the country, it has to large extent, stabilized our pension administration system.
“For instance before the reform, Nigeria has huge pension liabilities in trillions of naira but now the contributory pension scheme has generated over N5.8 trillion assets as at 30th June 2016.”
Oyo-Ita said that the assets had been invested in the various sectors of the nation’s economy.
She explained that globally, pension matters occupied a strategic place not only as a vital component of social security but also as a vehicle for nation-building.
The Head of Service said that African countries had given considerable attention to pensions due to myriads of challenges encountered in the administration of pensions.
Oyo-Ita said the Federal Government had extended the pension scheme to states and local governments in line with Pension Reform Act of 2014, adding that many states had adopted the scheme.
She stressed that states and local governments presently, were on various stages of implementing its pension schemes.
She called on the National Pension Commission to extend its net to people in informal sector.
Oyo-Ita also directed PENCOM to step up its enforcement drive to public and private sector institutions to ensure full compliance and in line with the enabling law.
She said the current administration will make funds available to address some issues of liabilities in the pension scheme.
Founder of the World Pension Summit, Eric Eggink, said that due to innovation of Android phones, many people could now invest on pension scheme anywhere they used their mobile phones.
Eggink called on workers, both in private and public sectors, to register for the pension scheme, to save for the rainy day.
Director-General of PENCOM, Mrs. Chinelo Anohu-Amazu, said that after a long period of faltering economic performance, there has been resurgent growth over the last decade in African countries’ GDP.
She listed African unique entrepreneurial/innovative spirit, emerging from its industries, smaller innovative initiatives such as the portable irrigation technology as some of the factors that led to the growth of African economies.
She explained that Africa’s infrastructure by far remained the most deficient sector hampering the continent’s development.
The summit was attended by important dignitaries including Governor Nasiru el-Rufai of Kaduna State; former Governor of Cross River, Donald Duke; NLC President, Ayuba Wabba and President of TUC, Kaigama Bala.
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President Muhammadu Buhari has said that Nigerian economy is currently limping, but that the country would quickly get out of the situation and forge ahead on its developmental strides.
