Nigeria: FEC Okays N758BN to Offset Pension Backlog
The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to offset outstanding pension liabilities for all categories of federal pensioners.
The approval granted yesterday, on the second day of the FEC meeting at State House, Abuja, will allow the Debt Management Office (DMO) to raise funds needed to settle pension arrears under the Defined Benefit Scheme – the system that preceded the current contributory pension scheme introduced in 2004 and amended in 2014.
FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support students’ accommodation projects.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed the approvals to newsmen after the FEC meeting chaired by President Bola Tinubu.
The federal cabinet likewise okayed N203.6 billion for six key infrastructure projects in the Federal Capital Territory (FCT), aimed principally to improve road network and water supply, as well as control erosion. Minister of State for the FCT, Dr. Mariya Bunkure, disclosed this while briefing reporters after day two of the FEC meeting.
That was as Minister of Works, Dave Umahi, warned that the federal government might take over any section of the Lagos-Ibadan Expressway not completed by contractors before April, as it moves to finalise the long-delayed project.
Umahi also said FEC approved 14 major road contracts worth N242.148 billion across the country.
Edun explained that the bond would address the financial burden faced by retirees owed a backlog of entitlements.
