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The Federal Executive Council (FEC) has approved a N758 billion bond to clear the backlog of pension liabilities for all categories of pensioners.
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The bond, to be raised by the Debt Management Office, will provide relief to beneficiaries who were owed funds under the defined benefit system.
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FEC also approved a 30 million euro long-term concessional financing by the French Development Agency to support students in the area of accommodation.
The Federal Executive Council (FEC) has given approval to the Debt Management Office to raise a N758 billion bond to clear the backlog of pension liabilities for all categories of pensioners.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this while briefing newsmen at the end of the council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
According to Edun, the N758 billion approval to clear pension liabilities will provide relief to the beneficiaries who were owed funds under the defined benefit system that preceded the contributory pension scheme, which came into force in 2004 and was updated with a new act in 2014.
He explained that people who were on a defined benefit scheme and yet to retire would need a top-up of their contributions or the amount due to them every time there was a wage increase every five years.
Edun said, “Secondly, and equally important in addressing the issue of social interventions, is one regarding pensions. There was an approval for the government, through the Debt Management Office, to raise a federal government bond of about N758 billion.”
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“That is to clear up the backlog of pension liabilities owed various categories of pensioners who are owed funds under the defined benefit system that preceded the defined contributory pension scheme, which came into force in 2004 and was updated with a new act in 2014.”
FEC also approved a 30 million euro long-term concessional financing by the French Development Agency to support students in the area of accommodation in conjunction with Family Homes Limited as the partner and implementer.
Edun said the financing would provide sustainable and clean energy-based accommodation for students, describing it as “an important intervention” for the educational sector and for students, given the shortage.
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