The Federal Executive Council (FEC) has approved a ₦758 billion bond to settle pension arrears under the Defined Benefit Scheme, providing much-needed relief to retirees. The decision was made during a FEC meeting held at the State House, Abuja, chaired by President Bola Ahmed Tinubu.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the approval, stating that the Debt Management Office (DMO) would raise the funds to pay off accumulated pension liabilities. These arrears arose from the previous Defined Benefit Scheme, which was replaced by the Contributory Pension Scheme in 2004 and updated in 2014.
“There was an approval for the government, through the Debt Management Office, to raise a Federal Government bond of about ₦758 billion to clear the backlog of pension liabilities owed to various categories of pensioners,” Edun said. He added that the move would provide relief to thousands of retirees awaiting their entitlements.
Edun explained that the backlog resulted from periodic wage increases that required adjustments to pension contributions under the old scheme, making it difficult to settle the liabilities on an ongoing basis.
In addition to the bond approval, FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support student accommodation projects across Nigeria. The initiative aims to improve living conditions for students by providing sustainable and clean energy-based housing.
“This €30 million long-term financing is in collaboration with Family Homes Limited, the implementing partner for the student housing project,” Edun explained. He noted that the project aligns with the administration’s commitment to enhancing educational infrastructure nationwide.
FEC also approved the National Single Window Project, aimed at improving Nigeria’s economic competitiveness, boosting government revenue, and facilitating trade under the African Continental Free Trade Agreement (AfCFTA). The project, which involves both hardware and software solutions, is expected to be completed within 24 months.
Edun highlighted the significance of the project in enhancing Nigeria’s global trade standing and strengthening the country’s fiscal position.
The council reaffirmed its commitment to stabilizing the economy, attracting investments, creating jobs, and reducing poverty in line with the president’s economic priorities.
