FG approves plans to deduct N20trn from pension funds for infrastructure development

The Federal Government, in Tuesday’s Federal Executive Council (FEC) meeting, approved the deduction of N20 trillion from pension and life insurance funds for infrastructural development in the country.

Minister of Finance Wale Edun disclosed this during a brief session with journalists at the end of the two-day FEC meeting, saying the fund will go for infrastructure such as housing, including provision for long-term mortgages.

Nigeria is resilient, and Nigerians are resilient. And the fact is that even before we start looking to foreign investors and foreign funding, there are long-term funds available in Nigeria to fund infrastructure projects, and it’s within the pension, life insurance, and investment fund industry generally, Edun said.

He also stated, “There is upwards of N20 trillion available, and much of it is in short-term funding that doesn’t need to be.

Pension money is long-term, he reiterated.

Furthermore, “People save over their lifetime for their pension. And so, in conversation, consultation, collaboration, and cooperation with the private sector, we can now announce. 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,” he added.

“So, we can look forward to leveraging these huge funds with the private sector’s expertise, ability, and capacity, partnering with government to drive economic growth.

“On the supply side, house construction will be funded. On the demand side, mortgages will be made available so that those constructing houses have an outlet. Nigerians who are saving so much through pension funds will have the added bonus of access to affordable mortgages.

That is the plan, the target, and the hope. And in this particular case, you have the best and brightest Nigeria has to offer, putting their minds together and committing to achieving the goals.”

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Mayowa Durosinmi

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Mayowa Durosinmi is a Nigerian investigative reporter for West Africa Weekly with reports focusing on politics, human rights, security and health in West Africa and the Sahel region.

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