BY VICTORIA ONU, ABUJA
Mobilising domestic savings for capital formation and investment has been identified as a critical success factor for harnessing the true growth potential of the Nigerian economy.
Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, stated this during the submission of report of the Working Group on National Savings Scheme in Abuja, Tuesday.
The minister stated that 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 which the plan aims to attain.
Ahmed assured that she would review the report and work with the Securities and Exchange Commission and other stakeholders to ensure that the country fully realizes the potential benefits of the scheme to the country.
Ahmed said, “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.
“On behalf of the federal government and the Ministry of Finance, Budget & National Planning, I extend my sincere appreciation for your selflessness in giving your time and skill in this painstaking work in support of Government. I trust that we will count on your patriotic spirit when we call on you for further support in this or other laudable endeavours for our dear Country”.
Earlier, the Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, explained that the need to establish a National Savings Strategy was outlined in the 10 Years Capital Market Master Plan “as one of the key strategies to enhance capital formation by mobilizing domestic funds for investment to drive rapid economic growth.”
He added that “It envisaged the deliberate provision of risk capital as venture capital and private equity that are naira based and more committed to the long-term prosperity of Nigeria as well as create a buffer to the instability created by foreign investors.
“We are indeed grateful for your commitment and efforts to position our market where it deserves to be – a capital market that will broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerate wealth creation and wealth distribution, provide capital to small and medium scale enterprises, and catalyze housing finance.”
While presenting the report, Dr. Ore Sofekun, member of the committee and CEO of Foothold Advisors Limited, who presented the report on behalf of the committee chairman, Mr. Fola Adeola, said the scheme will be open-ended and considering its medium-term to long-term objective, participants will have the opportunity to decide how their contributions will be invested and will be able to make periodic re-allocations.
To allow for product diversification and provide savers flexibility and choice, she stated that multiple investor risk/return profiles have been designed with corresponding savings products.
On implementation roadmap, Sofekun said the scheme will be subject to the overall supervision of the Securities and Exchange Commission, and structured, to start as a Department within the SEC adding that with the Investment and Securities Act (ISA) of 2007 currently being reviewed, a new section should be introduced in the proposed Investments and Securities Bill (ISB) to provide for the establishment of the National Savings Scheme as a mandatory scheme and other related matters.
