The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to clear outstanding pension liabilities for all categories of pensioners, offering long-awaited relief to retirees.
The approval, granted during Tuesday’s FEC meeting at the State House, Abuja, allows the Debt Management Office (DMO) to raise the funds needed to settle pension arrears under the Defined Benefit Scheme—the system that preceded the current contributory pension scheme introduced in 2004 and amended in 2014.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who disclosed this while briefing journalists after the meeting chaired by President Bola Ahmed Tinubu, said the move would address the financial burden faced by retirees awaiting their entitlements.
He explained that under the old Defined Benefit Scheme, some pensioners who had not yet retired required top-ups to their benefits whenever wage increases occurred, typically every five years.
In a separate development, FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support student accommodation projects.
The financing will be implemented in collaboration with Family Homes Limited, the government’s partner for the initiative.
