February 22, (THEWILL) – The Federal Government has received reports of the Working Group on the proposed National Savings Scheme, with a pledge to work with stakeholders in implementing the recommendations.
The Working Group was constituted virtually in May 2020, by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.
It was saddled with the responsibilities to study the National Savings Strategy Paper and advice the Federal Government on the feasibility of the proposals and/or recommend changes; on ways and means of mobilising and channelling 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 is not feasible at this time, noting that the Savings Scheme must be driven by incentives, primarily tax.
Receiving the report on Tuesday, the finance minister commended the Working Group for the recommendation and said that mobilisation of domestic savings for capital formation and investment remains 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 recognises 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 the Government in taking actionable steps to actualise 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 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 the 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.”
In his comments at the event, the Director-General of the Securities and Exchange Commission, Lamido Yuguda, said that the National Savings Scheme will grow investor confidence, improve the depth and breadth of the market in terms of product offerings, engender market integrity, and contribute to the country’s economic growth.
He said, “The need to establish a National Savings Strategy was outlined in the Master Plan as one of the key strategies to enhance capital formation by mobilising domestic funds for investment to drive rapid economic growth.
“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.
“The Securities and Exchange Commission deeply appreciates the Chairman and members of the Working Group for graciously accepting to serve on this very important Committee as a call to national service.
“It is worthy to state that despite their very busy schedules and the constraints imposed by the COVID-19 pandemic, they carried out the work of articulating a roadmap for the implementation of a National Savings Scheme with vigour and a sense of purpose.
“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 catalyse housing finance.”
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