Federal Government Denies Plans to Borrow N20tn Pension Fund for Infrastructure Development

The Federal Government has refuted allegations suggesting its intention to borrow the N20 trillion pension fund for infrastructure development. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, addressed the issue in a statement released in Abuja, asserting the government’s commitment to adhering to established rules and regulations governing the pension fund.

The clarification follows remarks attributed to the minister during a press briefing after a two-day Federal Executive Council meeting at the Presidential Villa. Reports indicated that the government planned to unveil a strategy to utilize local funds, including the pension fund, to finance infrastructure projects. However, Edun emphasized that the pension industry, like other sectors in the financial realm, operates under stringent regulatory frameworks.

In the statement issued on Thursday, Edun reiterated the government’s stance on compliance with legal boundaries concerning the pension fund. He highlighted the importance of safeguarding workers’ pensions, stating, “The Federal Government did not plan to exceed these legal boundaries, emphasizing that the government was committed to protecting workers’ pensions.”

Addressing the circulating rumors, Edun emphasized, “It has come to my notice that stories are making the round that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth.”

He further emphasized the highly regulated nature of the pension industry, stating that specific rules and limitations govern where pension funds can be invested. Edun’s statement aimed to dispel any misconceptions regarding the government’s intentions and reassure the public of its commitment to upholding the integrity of the pension system.

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