Government Plans N758bn Bond Issuance to Settle Pension Backlogs

The recent endorsement brings substantial relief to those entitled to payments under the previously established benefit plan, which transitioned to a contributory pension system in 2004, with updates made in 2014.

The Federal Executive Council (FEC) has sanctioned a ₦758 billion bond issuance via the Debt Management Office aimed at addressing outstanding pension obligations for various pensioners.

This resolution was reached during a meeting on Tuesday, led by President Bola Tinubu at the Council Chamber of the Presidential Villa in Abuja, as communicated by Wale Edun, the Finance Minister and Coordinating Minister of the Economy.

Edun highlighted that this sanction offers crucial support to individuals due payments under the defined benefit system, which was supplanted by a contributory pension model in 2004 and revised with legislation in 2014.

Moreover, Edun noted that the defined benefit plan necessitates regular updates, including adjustments to correspond with salary increases every five years for those who have not yet retired under the former system.

In addition, the FEC granted approval for a €30 million long-term concessional funding agreement with the French Development Agency, aimed at facilitating student housing projects, with Family Homes Limited acting as the execution partner.