The Minister of Finance, Wale Edun, has refuted allegations suggesting the Nigerian federal government’s intention to utilize N20 trillion from the Pension Fund for infrastructure projects.
In a press statement issued on Thursday in Abuja, Edun underscored the government’s adherence to established regulations governing pension funds, assuring that there were no plans to transgress these legal boundaries.
Edun highlighted the stringent regulatory framework governing the pension industry, akin to other sectors within the financial domain.
He reiterated the government’s commitment to upholding these regulations to safeguard the interests of workers’ pensions.
The Minister’s remarks come in response to widespread public outcry following the government’s earlier announcement of its purported plans to tap into the N20 trillion pension funds for infrastructure development initiatives.
Addressing the public concern, Edun emphasized, “It has come to my notice that there are stories making 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.”
Edun clarified that the government’s discussions, including those held at the federal executive council, were centered on exploring avenues within the existing legal frameworks to maximize the utilization of pension funds for driving investments in strategic growth sectors.
“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,” he asserted.
Moreover, Edun shed light on ongoing dialogues within the financial sector, involving key stakeholders, to explore innovative funding mechanisms aimed at stimulating economic growth, job creation, and poverty alleviation. He emphasized that these discussions did not entail compromising the safety or increasing the risk associated with pension fund investments.
“It is an ongoing conversation, a challenge and a test for the best and brightest in the financial industry to come up with solutions that while safeguarding the long-term savings of workers, do provide an avenue that can help to boost growth in the economy,” Edun concluded.
The Minister’s statement seeks to allay fears and clarify the government’s stance amidst mounting concerns over the management and utilization of pension funds for national development initiatives
