The Federal Executive Council (FEC) has approved a N758 billion bond issuance by the Debt Management Office (DMO) to settle outstanding pension liabilities for all categories of pensioners. Additionally, the council granted approval for a €30 million long-term concessional financing from the French Development Agency to support student accommodation initiatives in partnership with Family Homes Limited.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed these decisions while briefing journalists after the council meeting, which was presided over by President Bola Tinubu at the Presidential Villa in Abuja.
According to Edun, the N758 billion bond will provide financial relief to pensioners who were owed under the defined benefit system, which preceded the contributory pension scheme introduced in 2004 and revised in 2014.
He explained that under the old pension system, retirees required periodic top-ups to their benefits following wage increases, which typically occurred every five years. Over time, this led to accrued liabilities that became challenging to manage through regular payments.
“To address this backlog and ensure pensioners receive their rightful entitlements promptly, the government has approved the issuance of a federal government bond worth N758 billion,” Edun stated. “This move will bring significant relief to beneficiaries who have been waiting for their payments.”
In a separate development, the council also approved a €30 million financing arrangement to support student housing projects nationwide. The initiative, facilitated through a partnership with Family Homes Limited, aims to provide sustainable, clean energy-based accommodation for tertiary students.
Edun emphasized the significance of this intervention, noting the persistent shortage of student housing across the country.
Additionally, the council granted approval for the implementation of the National Single Window Project, a major economic reform designed to enhance trade efficiency and competitiveness. The project, which involves the deployment of advanced technology and e-government solutions, is expected to be fully implemented within 24 months.
The minister highlighted that several other memos related to economic growth and resilience were presented and approved during the meeting, particularly in connection with the government’s draft borrowing plan for the year.
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