The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to clear outstanding pension liabilities, offering long-awaited relief to retirees under the Defined Benefit Scheme.
The approval was granted during Tuesday’s FEC meeting at the State House, Abuja, allowing the Debt Management Office (DMO) to raise funds to settle accumulated pension arrears. This move aims to ease the financial burden on pensioners who have awaited their entitlements for years.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who briefed journalists after the meeting chaired by President Bola Ahmed Tinubu, explained that under the old pension system, some retirees required top-ups to their benefits whenever wage increases occurred, typically every five years.
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“This bond issuance will help clear the backlogs and ensure that pensioners under the Defined Benefit Scheme receive their rightful payments,” Edun stated.
In a related development, the council also approved a €30 million concessional loan from the French Development Agency (AFD) to support student accommodation projects across the country.
The loan, which comes with favorable repayment terms, is expected to address the shortage of housing for students and improve learning conditions in higher institutions.
These approvals signal the government’s commitment to improving the welfare of pensioners and students, addressing key socio-economic challenges through strategic financial interventions.
