The Federal Executive Council (FEC) has given the green light for the Debt Management Office to issue a ₦758 billion bond to settle the outstanding pension liabilities for all categories of pensioners.
This decision, made during a Tuesday meeting presided over 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 offers crucial relief to beneficiaries still owed under the defined benefit system, which was replaced by the contributory pension scheme in 2004 and later updated with a new act in 2014.
Edun further noted that the defined benefit scheme requires periodic adjustments, including top-ups every five years to accommodate wage increases for those yet to retire under the old system.
In addition, the FEC also approved a €30 million long-term concessional financing agreement with the French Development Agency. The loan will support student accommodation projects, with Family Homes Limited designated as the implementation partner.
