FG To Tap ₦20 Trillion Pension Fund For Infrastructure Boost

• Finance Minister Wale Edun unveils plan to utilize ₦20 trillion from pension fund for infrastructure.

• Edun expresses confidence in the initiative, highlighting collaboration with the private sector.

• Visit to PTAD headquarters shows the government’s focus on pensioners’ welfare amidst inflation.

the federal government plans to bolster economic growth by leveraging ₦20 trillion from the nation’s pension funds to finance essential infrastructure projects nationwide.

Finance Minister and coordinating minister of the economy, Wale Edun, revealed this to State House correspondents following a Federal Executive Council meeting chaired by President Bola Tinubu at the Presidential Villa.

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Edun emphasized that this initiative constitutes a pivotal aspect of Tinubu’s comprehensive reforms aimed at stabilizing the economy amidst high inflation and interest rates.

He further noted that the government intends to collaborate closely with private sector entities to tap into the substantial ₦20 trillion pool of long-term funds available within Nigeria’s pension, life insurance, and investment sectors.

Edun said “And one of the key drivers of economic growth is investment in infrastructure, in housing, power, rail, roads, water transport, even technology.

“These are key drivers of economic growth, they increase productivity when you invest in them, you get increased productivity, you get economic growth, and you get job creation, which reduces poverty.

“And that is the strategy, so it’s two-pronged, and we’re not pivoting towards this all-important growth, and you say where were the resources come from? Nigeria is resilient; Nigerians are resilient.

“And the fact is that even before we start looking to foreign investors, we start looking to foreign funding available in Nigeria, long-term funds to fund infrastructure projects, and it’s within the pension.

“The life insurance and investment fund industry. Generally, there are offers of 20 trillion Naira available, or much of it is in short-term funding that doesn’t need to be quite sure money is long-term. People save over their lifetime for their pension.

“And so in conversation, in consultation, collaboration and cooperation with the private sector, we are now able to announce and with the full knowledge and support of all parties, that there will be an initiative to fund growth through investment in infrastructure, including housing provision of mortgages, long term mortgages, 25 year mortgages at relatively low interest rates.

“Initially, of course, the government will standby and provide some support, particularly in this era of high interest rates, but eventually, as interest rates come down, there should be less room for the government through providing, for example, guarantees and so forth.“

The Finance Minister exuded confidence, stating, “The best minds have committed to realise this ambitious vision that leverages our own resources to build a prosperous future.“

Pension Fund

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said President Bola Ahmed Tinubu is committed to the welfare of vulnerable Nigerians, particularly pensioners.

He made the statement during a visit to the Pension Transitional Arrangement Directorate (PTAD) headquarters in Abuja.

The minister engaged with PTAD’s management and staff, then toured the premises to familiarise himself with the operations of each department and unit.

He said that despite the inflation, Tinubu prioritises the welfare of pensioners because it is in line with his Renewed Hope Agenda.

Edun promised to assist the Directorate in processing the new pension increment, arrears, gratuities, and entitlements for Next-of-Kins (NoKs) and praised the Directorate for their valuable work.

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The Executive Secretary of PTAD, Dr. Chioma Ejikeme, emphasised the agency’s dedication to providing excellent services to pensioners and other stakeholders in accordance with the Directorate’s mandate.

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