The Bola Tinubu administration has addressed circulating rumors about an alleged plan to access the salaries and pension contributions of Nigerian workers for infrastructure development.
This clarification follows reports earlier this week that suggested the government was planning to tap into pension and life insurance funds for such purposes.
Finance Minister and Coordinator of the Economy, Wale Edun, firmly denied these claims, emphasizing that the government will not engage in any illegal activities concerning workers’ savings and pensions.
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“It has come to my notice that there are stories making rounds that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers,” Edun stated. “Nothing could be further from the truth.”
Edun underscored the stringent regulations governing the pension industry, noting that there are clear rules and limitations on how pension funds can be invested.
“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,” he said. “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.”
Clarifying the nature of the discussions that sparked the rumors, Edun explained that the conversations were merely informational and no approvals for any actions were sought. “Merely for noting; merely for information, no approval was sought for any action whatsoever,” he explained.
“What was discussed was an ongoing initiative drawing in all the major stakeholders in the long-term savings industry to see how, within the rules, these funds could be used maximally and most effectively to drive investment in key growth areas such as infrastructure, housing, and providing Nigerians with affordable mortgages.”
Edun reassured the public that there is no intention to compromise the safety or returns of pension funds. “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,” he said.
“No attempt whatsoever to increase the risk, no attempt whatsoever to lower the returns that would otherwise be earned.”
He highlighted the federal government’s capacity to provide guarantees to unlock funding necessary for economic growth, job creation, and poverty alleviation.
“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,” Edun stated.
In conclusion, Edun framed the discussions as part of an ongoing challenge for the financial industry to find innovative solutions that safeguard long-term savings while promoting economic growth.
“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.”