Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the government has no plan to unlawfully access workers’ hard-earned savings and pension contributions.
The federal government had on Wednesday announced plans to use the N20 trillion in workers’ pension funds for infrastructure projects. But the announcement generated mixed reactions from Nigerians, with many expressing fears about its potential impact.
Addressing the concerns on Thursday, Mr Edun explained that the pension industry, like much of the financial sector, is subject to stringent regulations and limitations on how pension fund assets can be invested.
He noted that the government has no intention of surpassing these prescribed limits, which are in place to protect workers’ pensions.
“It has come to my notice that stories are making the rounds that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be further from the truth.
“The pension industry, like most of the financial industry, is highly regulated. There are rules, and well laid out limitations about what pension fund assets can be invested in, and what it cannot be invested in.
“The federal government has no intention whatsoever to go beyond those prescribed limits, or outside those bounds, which are there to safeguard the pensions of workers,” he said.
The minister explained that the information shared at the Federal Executive Council meeting was purely informative, with no approval sought for any actions.
The discussion centred on an ongoing initiative involving major stakeholders in the long-term savings industry, he added.
According to him, the aim is to explore avenues within legal frameworks, to maximise the use of these funds to drive investment in critical growth sectors such as infrastructure and housing and to facilitate affordable mortgages for Nigerians.
Mr Edun disclosed that the government has no plans to offer risky investments for pension funds or to compromise on returns. Instead, the focus is on providing guarantees where necessary to unlock funding for economic growth, job creation, and poverty alleviation.
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He said the ongoing conversation presents a challenge for financial experts to devise solutions that both safeguard long-term savings and stimulate economic growth.
Mr Edun reiterated the government’s commitment to working with industry leaders to achieve these goals while assuring the protection of workers’ savings and pensions.
“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, while safeguarding the long-term savings do provide an avenue that can help to boost growth in the economy”, he said.
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