From Victor Osula, Abuja
Edun
The Federal Government has assured workers that their pensions are safe, saying it will comply with relevant laws guiding the administration of the funds before tapping into the savings for developmental purposes.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who made this known on Wednesday, said the Federal Government had no intention of illegally tapping into the pension funds.
Edun spoke in response to reports that the Federal Government was considering tapping into the pension funds to drive investment in growth areas, including infrastructure and housing.
While the reports had generated reactions from Nigerians, including former Vice President Atiku Abubakar, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), on Wednesday, warned the Federal Government not to tamper with the workers’ pension fund.
However, in a statement on Wednesday, Edun clarified his earlier position on the plan by the government to tap into pension funds, saying the pension sector, similar to other sectors in the financial industry, is strictly regulated by specific legal frameworks. He assured that the Federal Government does not plan to circumvent any of the guidelines.
The statement read: “It has come to my notice that there are stories making the rounds 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 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.
“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, including infrastructure, housing, and, of course, to find a way to provide Nigerians with affordable mortgages.
“Within this context, there is no attempt, nor is it being considered, to offer unsafe investments for pension funds or even insurance funds or any investment funds. No attempt whatsoever to increase the risk. No attempt whatsoever to lower the returns that would otherwise be earned.
“It is important to remember that the Federal Government possesses the ability to provide guarantees where stocks are needed in order to unlock funding that will lead to growth, creation of jobs and 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 helps to boost growth in the economy.”
