THE Minister of Finance, Budget and National Planning, Zainab Ahmed yesterday received the National Savings Scheme Report from the Working Group, with a pledge to collaborate with 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 included, to study the National Savings Strategy Paper and advise the Federal Government on the feasibility of the proposals and/or recommend changes.
It was also to provide recommendations on how to mobilise and channel corporate and individual savings to help entrepreneurs and enterprise development and, as a result, meet the urgent job of diversifying the economy and deepening the capital market, among other things.
While the committee believes a national savings program for Nigeria, as recommended in the strategy document, is viable, it must be a required savings scheme for persons in the formal sector, according to its findings.
According to the research, only people between the ages of 18 and 50 should be required to participate. It went on to say that a national corporate savings program was not practicable at this time, and that the savings scheme would have to be fueled by incentives, particularly taxes.
Receiving the report, the finance minister commended the working group for the proposal and stated that mobilisation of domestic savings for capital formation and investment remained a vital success element for unlocking the actual 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”.
