Minister for Finance, Wale Edun has clarified reports that the Federal Government plans to borrow from the pension fund for infrastructural development.
Edun, in a statement issued on Thursday, May 16th, stated that government had no intention of increasing the risk associated with the pension funds or allowing their investments to become less secure.
The Minister explained that there were limitations to what the pension fund can be invested in, adding that the industry is highly regulated.
“It has come to my notice that stories are making the round that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth.
“The pension industry, like most the financial industries, 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 limitations and go outside those bounds which are there to safeguard the pensions of workers.
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“What was announced to the Federal Executive Council was that there was an ongoing initiative drawing in all the major stakeholders in the long-term saving industry, those that handle funds that are available over a long period to see how, within the regulations and the laws; these funds could be used maximally to drive investment in key growth areas.
To see how within the regulations and 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 is 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, to lower the returns that would otherwise be earned.
“We must remember that the federal government possesses the ability to provide guarantees where stocks are needed to unlock funding that will lead to growth, the creation of jobs and the alleviation of poverty,” the statement read.
