The Federal Executive Council (FEC) has approved the issuance of a ₦758 billion bond by the Federal Government to clear outstanding pension liabilities under the old Defined Benefit Scheme.
This decision was revealed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a press briefing after the FEC meeting led by President Bola Tinubu at the Presidential Villa in Abuja.
Edun explained that the bond will empower the Debt Management Office (DMO) to settle pension arrears that have built up over several years, bringing relief to retirees affected by the backlog.
The accumulated liabilities are attributed to wage increases that were not immediately reflected in pension adjustments for retirees under the scheme.
In addition to the pension bond, the FEC approved a €30 million concessional loan from the French Development Agency to fund student housing projects nationwide. The project, in partnership with Family Homes Fund Limited, is designed to alleviate Nigeria’s shortage of student accommodations while promoting green energy solutions.
The council also approved the implementation of the National Single Window Project to simplify trade processes, improve revenue collection, and enhance Nigeria’s competitiveness in global markets.
“The project will position Nigeria for stronger competition under the African Continental Free Trade Agreement (AfCFTA),” Edun added.
He emphasized that these measures are part of the government’s broader strategy to stabilize the economy, attract investments, boost food and energy security, and ensure sustainable development.
