The Federal Government has clarified that it has no plans to “illegally access” workers’ savings and pension contributions, addressing recent reports suggesting otherwise.
Recent rumors indicated that the government intended to use pension and life insurance funds to develop the country’s infrastructure.
However, Finance Minister and Coordinator of the Economy Wale Edun clarified these claims, emphasizing that the government would not violate any laws or regulations governing pension funds.
In a video statement released by the Ministry of Finance on Thursday, Edun reassured the public, saying, “It has come to my notice that there are stories circulating that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be further from the truth.”
Edun explained that the pension industry is highly regulated, with strict rules and limitations on how pension money can be invested.
He stressed that the government respects these regulations and has no intention of overstepping them. “The Federal Government has no intention whatsoever to go beyond those limits and go outside those bounds which are there to safeguard the pensions of workers,” he stated.
He clarified that the recent discussions were purely informational and no approval was sought for any specific action. “Merely for noting; merely for information, no approval was sought for any action whatsoever,” Edun said.
He mentioned that there is an ongoing initiative involving all major stakeholders in the long-term savings industry.
This initiative aims to explore how, within the existing rules and regulations, these funds could be most effectively used to drive investment in key areas such as infrastructure and housing. Additionally, there is a focus on providing Nigerians with affordable mortgages.
Edun assured that there is no attempt to push pension funds or insurance funds into less safe investments or to reduce the returns that these funds would otherwise generate.
“No attempt whatsoever to increase the risk, no attempt whatsoever to lower the returns that would otherwise be earned,” he emphasized.
He also highlighted that the Federal Government has the capacity to provide guarantees when necessary to unlock funding that would foster economic growth, job creation, and poverty alleviation.
“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 can help to boost growth in the economy,” Edun concluded.
This clarification aims to dispel any concerns about the safety of workers’ savings and pension contributions, ensuring that they remain protected under the current regulatory framework.
