THE Minister of Finance and the Coordinating Minister of the Economy Wale Edun has clarified concerns over the federal government’s planned withdrawal of N20 trillion from the pension fund for infrastructure projects.
Reacting to the backlash that the planned withdrawal of the fund generated, Edun said the government would comply with the established rules governing the fund.
In a statement issued on Thursday, May 16, in Abuja, Edun noted that the pension industry, similar to other sectors in the financial industry, is strictly regulated by law.
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He explained that the federal government did not plan to surpass these laws, emphasising that the government was committed to protecting workers’ pensions.
It would be noted that public backlash greeted the federal government’s plan to use the N20 trillion in workers’ pension funds for infrastructure projects.
Edun in further response to the concerns said: “It has come to my notice that stories are making around 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 of 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.”
According to the minister, 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,” Edun said.
In addition, the Minister said the recommendation to ‘unlock’ some of the latent funds in the country such as pension funds was only an ongoing conversation in the financial sector among the “best and brightest”.
He said the conversation revolved around exploring avenues for funding that would lead to growth, creation of jobs, and alleviation of poverty.
Moreover, Edun said the government had no attempt to increase the risk of the pension funds or allow their investment to be less safe.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.