16th May, 2024
By Ayorinde Oluokun/Abuja
The Federal Government on Thursday assured that it has no plans to unlawfully take over pension funds for the development of infrastructure in the country as being insinuated
While denying the plan, the Minister of Finance and Coordinating Minister for the Economy Wale Edun, in a statement, assured Nigerians their “hard-earned savings and pension funds are safe”.
According to Edun, the Federal Government will not breach the stringent regulations governing the pension industry for its selfish use.
The Minister noted that there are rules and well-laid-out limitations about what pension fund assets can be invested in, and what it cannot be invested in.”
Edu said these regulations serve as safeguards to “protect the pensions of workers.”
The Minister further clarified that the recent announcement made at the Federal Executive Council (FEC) meeting that the government will seek funding for investment in infrastructural development was purely informational and did not seek approval for any action.
He said purpose was to initiate a collaborative effort that will draw in all the major stakeholders in the long term savings industry and to explore innovative ways within the rules and regulations set by the law,” to maximize the impact of long-term savings on the economy.
The Minister said this was in the bid to drive investment in key growth areas including infrastructure, housing and to facilitate affordable mortgages” for Nigerians.
The Minister therefore affirmed that there is no attempt, nor is it being considered to offer unsafe investments for pension funds.”
The overarching goal, the Minister said is to “boost growth in the economy” without compromising the security of pension funds.
Edun also noted that government has capacity to provide guarantees where stocks are needed in order to unlock funding that will lead to growth, creation of jobs and alleviation of poverty.”
Edun framed the initiative as a collaborative challenge “for the best and the brightest in the financial industry to come up with solutions” that “safeguard the long-term savings” while also promoting economic growth.