The Federal Government will comply with relevant laws guiding the administration of pension funds before tapping into the savings for developmental purposes, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said.
The minister, who clarified his earlier position on the plan by the government to tap into pension funds, noted that 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 minister explained: “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 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 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.”
Nonetheless, the minister insisted that the government will seek to unlock some of the latent funds in the country. He maintained that the conversation revolves around exploring avenues for funding that will lead to growth, the creation of jobs, and the alleviation of poverty.
