Dr Zainab Ahmed
Dr Zainab Ahmed
News

Minister Falsifies Report Of Government Borrowing For Pension

Eludoyin Oluwanisola

Minister of Finance, Dr Zainab Ahmed, has falsified reports that claimed the Federal Government was planning to borrow N2trillion pension funds for infrastructure development.

According to her at the Udo Udoma & Belo-Osagie (UUBO) second private equity summit with the theme: ‘Drivers, Disruptors and Unlocking Value.” In Lagos, the government is not borrowing but designing a product for pension funds manager to invest 20 per cent in and get free safe returns.

” We are actually working to design products which they can uptake and we are also considering, in addition to regulation, whether we should amend the Act to allow them do other things

“In 2015, the total government stock that we had was 80 per cent domestic and 20 per cent foreign.

“But we are gradually changing that; the debt management strategy is to move the ratio to 60 per cent domestic and 40 per cent external and now it’s 35 per cent external borrowing.

“This is to give room for private sector to borrow and to reduce cost of debt servicing,” she said

Concerning the Value added Tax , Zainab said it was a usual thing for any form of tax increase to lead to inflation, but it’s a temporary thing; after some months it will moderate.

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