PenCom Denies Granting N10 Trillion Loan to FG

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Mrs. Aisha Dahir-Umar, the Director-General of the National Pension Commission (PenCom), refuted reports claiming that the commission provided a N10 trillion loan to the federal government, describing such reports as “totally misleading.”

In a recent media interview, Dahir-Umar clarified that investments made by Pension Fund Administrators (PFAs) on behalf of the federal government did not constitute loans. Dahir-Umar emphasized that PenCom does not function as a bank and does not hold or manage pension funds.

The investments made by PFAs in securities of the Federal Government of Nigeria (FGN) are not loans but rather investments in approved securities such as bonds and treasury bills, sanctioned by relevant government agencies like the Debt Management Office (DMO) and Securities and Exchange Commission (SEC).These investments, traded on authorized capital markets like the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, adhere to international best practices.

Source: Daily Trust

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