Savings scheme

FG agrees to partner with CBN and SEC for national savings program


The Federal Government has pledged to partner with the Central Bank of Nigeria, the Securities and Exchange Commission and others to implement the recommendations of the National Savings Scheme.

The Minister of Finance, Budget and National Planning, Zainab Ahmed made it known on Tuesday 22 February, Naija News reports.

The minister’s statement followed receipt of an earlier report from the NSC.

It may be recalled that the NSC working group was virtually constituted by the Minister in May 2020 during the dreaded COVID-19[female[feminine epidemic across the country.

Naija News understands that the group is responsible for reviewing the national savings strategy document and advising the federal government on the feasibility of the proposals and/or recommending changes.

It also has the mission of advising on ways and means of mobilizing and channeling the savings of companies and individuals to accelerate the formation of national capital in order to support entrepreneurs and business development, and consequently to accomplish the urgent task of diversifying the economy and deepening the capital market, among others.

In its report delivered to the finance minister earlier, the committee said that while it believed a national savings scheme for Nigeria as proposed in the strategy paper was feasible, it had to be a mandatory savings scheme for individuals in the formal sector.

He also noted that citizens between the ages of 18 and 50 would be required to participate in the scheme, adding that a national corporate savings scheme was not feasible at present and that the savings scheme must be motivated by incentives, mainly fiscal ones.

In her response to the report, Ms. Ahmed commended the task force for the recommendation and promised that everything noted in the report will be considered for implementation.

She said that mobilizing domestic savings for capital formation and investment remained a critical success factor in harnessing the true growth potential of Nigerian economy.

The minister said, “I look forward to receiving the report of the working group on the draft national savings plan after your inauguration in 2020 which took place virtually due to the Covid-19 pandemic.

“The mobilization of domestic savings for capital formation and investment remains a critical success factor in harnessing the true growth potential of the Nigerian economy.

They have just launched the National Medium Term Development Plan 2021-2025 which recognizes the role of a deep financial market in supporting the high and sustainable growth the plan aims to achieve. I hope that the proposals made in this report will guide the government in taking concrete measures to achieve the stated objectives.

“My team and I will review the report and work with the Securities and Exchange Commission and other stakeholders to ensure that we fully realize the potential benefits of the program for the country.

“We understand that this initiative will involve several other agencies such as CBN, FIRS, NAICOM and other important stakeholders. We will leverage our collaborative working environment across government to ensure we get the necessary buy-in and commitment from relevant stakeholders.

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