In a recent Federal Executive Council (FEC) meeting, the Federal Government of Nigeria greenlit the allocation of N20 trillion from pension and life insurance funds towards the country’s infrastructural development.
This announcement was made by Finance Minister Wale Edun during a press briefing following the two-day FEC meeting. He stated that these funds would be channeled towards various infrastructural projects, including the provision of long-term housing mortgages.
Edun emphasized the resilience of Nigeria and its people, pointing out that the country has substantial long-term funds within its pension, life insurance, and investment fund industry. These funds can be utilized for infrastructural projects even before seeking foreign investments and funding.
“There is an availability of more than N20 trillion, much of which is currently in short-term funding that can be better utilized. Pension money, being long-term, is ideal for this purpose,” Edun reiterated.
He further explained that people save for their pensions over their lifetime. In collaboration with the private sector, the government can now announce an initiative to fund growth through investment in infrastructure. This includes housing and the provision of long-term, low-interest mortgages spanning 25 years.
Edun expressed optimism about leveraging these substantial funds in partnership with the private sector’s expertise and capacity to drive economic growth. He outlined the plan to fund house construction on the supply side and make mortgages available on the demand side. This strategy ensures that those constructing houses have a market, and Nigerians saving through pension funds gain the added advantage of access to affordable mortgages.
“This is our plan, our target, and our hope. In this case, you have Nigeria’s best and brightest minds coming together, committed to achieving these goals,” he concluded.
