No Plan To Use Pension Funds Illegally – Federal Govt

The federal government has stated that it has no plans to illegally access or misuse the pension funds and savings of Nigerian workers. This assurance was given by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in response to circulating rumours suggesting otherwise.

In a detailed statement, Edun addressed the concerns head-on, emphasising the stringent regulations governing the pension industry. “The pension industry, like most of the financial industry, is highly regulated. There are rules and well-laid-out limitations about what pension fund assets can be invested in, and what they cannot be invested in,” he said.

Edun stressed that the government fully respects these regulations and has no intention of overstepping the prescribed limits designed to protect workers’ pensions. “The federal government has no intention whatsoever to go beyond those prescribed limits or outside those bounds, which are there to safeguard the pensions of workers,” he affirmed.

The minister clarified that a recent announcement at the Federal Executive Council (FEC) was misinterpreted. “What was announced at the Federal Executive Council was merely for information purposes only. No approval was sought for any action whatsoever,” he explained. 

He said the announcement was intended to inform stakeholders about an ongoing initiative involving key players in the long-term savings industry, aiming to explore how funds could be optimally used within existing regulations to drive investments in critical growth areas such as infrastructure and housing.

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Edun highlighted that the initiative seeks to align with legal frameworks to boost investments without compromising the safety and returns of pension funds. “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,” he assured.

The finance minister further explained the government’s role in providing guarantees to unlock funding for economic growth, job creation, and poverty alleviation. “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,” he noted.

Edun described the initiative as an ongoing conversation and a challenge for the financial industry to devise innovative solutions that safeguard long-term savings while contributing to economic growth. 

“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, while safeguarding the long-term savings, do provide an avenue that can help to boost growth in the economy,” he concluded.

The minister’s remarks aim to dispel fears and reassure Nigerians that their pensions are secure. He also stressed on the government’s commitment to transparency and adherence to regulatory frameworks underscores its dedication to maintaining the integrity of the pension system while seeking avenues for economic development.