The Federal Executive Council (FEC) has approved the issuance of a ₦758 billion bond by the Debt Management Office to clear the backlog of pension liabilities for all categories of pensioners.
The decision, made during Tuesday’s meeting chaired by President Bola Tinubu at the Council Chamber of the Presidential Villa in Abuja, was announced by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. According to Edun, the approval provides significant relief to beneficiaries owed under the defined benefit system, which was replaced by the contributory pension scheme in 2004 and updated with a new act in 2014.
Edun further explained that the defined benefit scheme requires periodic adjustments, including top-ups to reflect wage increases every five years, for those yet to retire under the old system.
Additionally, the FEC approved a €30 million long-term concessional financing agreement with the French Development Agency. The loan aims to support student accommodation projects, with Family Homes Limited serving as the implementation partner.