The Minister of Finance, Budget and National Planning, Zainab Ahmed has received the National Savings Scheme Report from the Working Group, with a pledge to collaborate with the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and stakeholders in implementing the recommendations.
The working group was constituted virtually by the minister in May 2020 due to the Covid-19 pandemic.
Its responsibilities were to study the National Savings Strategy Paper and advise the Federal Government on the feasibility of the proposals and/or recommend changes.
It was to also advise on ways and means of mobilising and channeling corporate and individual savings to accelerate domestic capital formation to support entrepreneurs and enterprise development, and consequently achieve the urgent task of diversifying the economy and deepening the capital market among others.
In its report, the committee said while it believed that a national savings scheme for Nigeria as proposed in the strategy document is feasible, it must be a mandatory savings scheme for individuals in the formal sector.
The report stated that only individuals between the ages of 18 – 50 should be mandated to participate. It added that a national corporate savings scheme was not feasible at this time, noting that the savings scheme must be driven by incentives, primarily tax.
Receiving the report, the finance minister commended the working group for the recommendation and said that mobilisation of domestic savings for capital formation and investment remained a critical success factor for harnessing the true growth potential of the Nigerian economy.
She said: “I am delighted to receive the report of the working group on the proposed national savings scheme after your inauguration in 2020 which was conducted virtually due to the Covid-19 pandemic.
“Mobilisation of domestic savings for capital formation and investment remains a critical success factor for harnessing the true growth potential of the Nigerian economy.
“The just launched Medium-Term National Development Plan 2021-2025 recognizes the role of a deep financial market in supporting the high and sustainable growth the plan aims to attain. I hope the proposals made in this report will guide Government in taking actionable steps to actualize the objectives outlined.
“My team and I will review the report and work with the Securities and Exchange Commission and other stakeholders to ensure we fully realise the potential benefits of the Scheme to the country.
“We understand that this initiative will involve several other agencies such as the CBN, FIRS, NAICOM and other important stakeholders. We will leverage on our collaborative working environment within the government to ensure we get necessary buy-in and commitment from relevant stakeholders.”