The Federal Government has stated that there are no intentions to unlawfully tap into workers’ savings and pension contributions.
Reports had emerged suggesting that the government intended to utilize funds from pensions and life insurance for infrastructure development.
However, in clarification, Minister of Finance and Economic Coordinator, Wale Edun, emphasized that the government has no plans to access the savings and pensions of workers unlawfully.
“It has come to my notice that there are stories making around that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers,” he said in a video released by the ministry on Thursday.
“Nothing could be further from the truth. The pension industry like most of the financial industry is highly regulated. There are rules, there are limitations about what pension money can be invested in and what it cannot be invested in.
“The Federal Government has no intention whatsoever to go beyond those limits and go outside those bounds which are there to safeguard the pensions of workers.”
A statement on this week’s FEC announcements by the Honourable Minister of Finance & Coordinating Minister of the Economy Mr. Wale Edun pic.twitter.com/O2V0k6mnlC
— Federal Ministry of Finance (@FinMinNigeria) May 16, 2024
According to the minister, what was discussed was “merely for information” with no approval taken.
“Merely for noting; merely for information, no approval was sought for any action whatsoever was that there was an ongoing initiative drawing in all the major stakeholders in the long term savings industry, those that handle funds that are available over a long period to see how within the rules; within the regulations and the laws, these funds could be used maximally; most effectively to drive investment in key growth areas, infrastructure, housing and of course to find a way to provide Nigerians with affordable mortgages within this context.
“There’s no attempt or no consideration to provide less safe investments for pension funds or even insurance funds or any investment funds that are made available.
“No attempt whatsoever to increase the risk, no attempt whatsoever to lower the returns that would otherwise be earned. And we must remember that the Federal Government possesses the ability to provide guarantees where such are needed in order to unlock funding that would lead to growth, creation of jobs and the alleviation of poverty.
“It is an ongoing conversation, a challenge, a test for the best and the brightest in the financial industry to come up with solutions that whilst safeguarding the long term savings do provide an avenue that can help to boost growth in the economy.”