The federal government aims to boost economic growth by utilising ₦20 trillion from the nation’s pension funds to finance vital infrastructure projects nationwide.

Finance Minister and coordinating minister of the economy, Wale Edun, disclosed this to State House correspondents after President Bola Tinubu presided over the Federal Executive Council meeting at the Presidential Villa.

He mentioned that the initiative is a crucial part of Tinubu’s comprehensive reforms aimed at stabilising the economy in the face of high inflation and interest rates.

He stated that the government will work closely with private sector players to access the over ₦20 trillion pool of long-term funds available with Nigeria’s pension, life insurance, and investment funds.

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.“

Tinubu committed to pensioners’ welfare, says Finance Minister

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.

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.

The Naira has recorded its first N61.38 appreciation against the Dollar at the official foreign exchange market after weeks of depreciation.

Recall that Bureau De Change operators blamed the Naira’s depreciation on the Central Bank of Nigeria’s insufficient foreign currency allocation.

However, FMDQ data showed that Naira appreciated by N1459.02 per Dollar on Wednesday compared to N1520.40 on Tuesday.

This represents a 4.2 per cent gain against the Dollar on Wednesday compared to the previous day.

Similarly, the Naira dropped to N1515 per Dollar in the parallel market section from N1520.

This development comes amid a report by the Nigeria Bureau of Statistics (NBS) showing that Nigeria’s inflation surged to 33.69 percent in April 2024.

 EFCC Vows To Clampdown On Businesses, Others Charging In Dollars

Meanwhile, the Economic and Financial Crimes Commission (EFCC) has intensified its efforts against illegal dollar transactions in Nigeria, warning businesses and individuals against illegal dealing in foreign currency.

Naija News reports that the  Acting Director of Public Affairs for the EFCC, Wilson Uwujaren, made this disclosure while speaking on Channels Television’s program, Politics Today.

He emphasized the agency’s commitment to enforcing the law strictly.

Uwujaren declared, “The ship has already left the train station. We have started a movement, and we are not going to relent.”

He urged the public to cooperate with the EFCC by reporting any suspicious activity.

In the midst of growing hardship, the most recent report from the National Bureau of Statistics’ April Consumer Price Index and Inflation report highlighted three Nigerian states grappling with the highest food prices.

World wide gist understands that Kogi, Kwara, and Ondo are the states with the highest food prices in Nigeria.

With the report ranking Kogi State having the highest food inflation rate at 48.62 per cent, followed by Kwara at 46.73 per cent and Ondo at 45.87 per cent on a year-on-year basis.

On the other hand, Adamawa (33.61 percent), Bauchi (33.85 percent), and Nasarawa (34.03 percent) reported the least increase in food inflation.

Nevertheless, Lagos, Edo, and Yobe are the Nigerian states with the highest food prices on a month-to-month basis.

According to the data, Lagos (4.74 percent), Edo (4.06 percent), and Yobe (3.99 percent) experienced the lowest increase in food inflation.

This development coincides with April’s headline inflation and food inflation surging to 33.69 percent and 40.53 percent, respectively.

According to the latest consumer price index and inflation report released by the NBS, Nigeria has again experienced a surge in inflation, rising to 33.69 per cent in April from 33.20 per cent in March.

Naija News understands that this increase reflects the country’s ongoing economic hardship.

It is crucial to note that inflation has been persistently on the rise since the beginning of President Bola Ahmed Tinubu’s administration in May last year.

In May 2023, inflation stood at 22.41 per cent, and it has steadily increased to 33.69 per cent in April this year.