The Minister of Finance, Budget and National Planning Zainab Ahmed dismissed the report that the Federal Government is planning to borrow two trillion naira pension funds for infrastructure development.
She stated this in Lagos at Udo Udoma & Belo-Osagie second private equity summit with the theme: ‘Drivers, Disruptors and Unlocking Value.
The Minister said government was not borrowing the fund for infrastructure development. According to her, the National Economic Council set up a committee of itself to explore the possibility of being able to encourage the pension fund managers to invest in infrastructure development.
Zianab added that the investment in infrastructure was not moving because it was easier for them to invest in Teasury Bills and Federal Government bonds. She said that with returns on TBs not good, they were looking for long-term instrument they could invest in.
The Minster while, speaking on Value Added Tax, VAT increment, admitted that it would contribute to inflation rise, said that it would moderate over time.