Adequate mobilisation of domestic savings for capital formation and investment has been identified as a veritable option for growing the economy.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, stated this while receiving the Working Group Report on the National Savings Scheme in Abuja yesterday.
Ahmed stated that the just launched Medium-Term National Development Plan 2021-2025 recognizes the role of a deep financial market in supporting sustainable growth.
“I hope the proposals made in this report will guide the government in taking actionable steps to actualize the objectives outlined,” she said.
She assured that she would work with the Securities and Exchange Commission (SEC) and other stakeholders to ensure that the country fully realises the potential benefits of the scheme.
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 our collaborative working environment within the government to ensure we get the necessary buy-in and commitment from relevant stakeholders.
“On behalf of the Federal Government and the Ministry of Finance, Budget and National Planning, I appreciate 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.”
The SEC Director-General, Lamido Yuguda, explained the need to establish a National Savings Strategy as outlined in the 10-Years Capital Market 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 CAMMIC commissioned a white paper on a National Savings Strategy and recommended to the Minister of Finance, Budget and National Planning the formation of a working group to explore the feasibility of the report findings.”
Dr. Ore Sofekun, a member of the committee and CEO of Foothold Advisors Limited, on behalf of the Chairman, Fola Adeola, presented the report.