FG speaks on accessing workers savings, pensions for infrastructure

The Federal Government has denied plans to access workers’ savings and pension contributions.

There were reports that the Federal Government plans to tap from the pension and life insurance to develop infrastructure in the country.

But clarifying the comment attributed to him, the Minister of Finance and the Coordinator of the Economy Wale Edun said the government will not illegally access the savings and pensions of workers.

“It has come to my notice that there are stories making around that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers,” he said in a video released by the ministry on Thursday.

“Nothing could be further from the truth. The pension industry like most of the financial industry 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 limits and go outside those bounds which are there to safeguard the pensions of workers.

“There’s no attempt or no consideration to provide less safe investments for pension funds or even insurance funds or any investment funds that are made available.

“No attempt whatsoever to increase the risk, no attempt whatsoever to lower the returns that would otherwise be earned. And we must remember that the Federal Government possesses the ability to provide guarantees where such are needed in order to unlock funding that would lead to growth, creation of jobs and the alleviation of poverty.

“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”.