The Federal Government of Nigeria has announced plans to issue bonds worth N758bn to clear outstanding pension debts under the old Defined Benefit Scheme. This was disclosed by the Minister of Finance, Wale Edun, after the Federal Executive Council meeting in Abuja. The bond issuance aims to address pension liabilities accumulated due to periodic wage increases before the Contributory Pension Scheme was introduced in 2004.
Edun explained that many pensioners require top-ups whenever salaries are increased, leading to a backlog of unpaid pension entitlements. The government’s decision to raise funds through the Debt Management Office is expected to bring significant relief to retired workers who have been awaiting their payments. This move also aligns with broader social intervention efforts aimed at improving financial security for pensioners.
Additionally, the council approved a €30m (N46.30bn) financing deal with the French Development Agency to develop clean-energy student housing across Nigerian universities. The project, managed by Family Homes Fund Limited, seeks to address the student accommodation crisis while promoting sustainable energy use in tertiary institutions.
Another major decision from the meeting was the approval of the National Single Window Project, an initiative designed to streamline Nigeria’s export processes. The project, expected to be fully operational within 24 months, will enhance trade efficiency, increase government revenue, and strengthen Nigeria’s competitive position under the African Continental Free Trade Agreement.
With these initiatives, the government aims to resolve key economic challenges, support social welfare programs, and improve financial stability. The planned pension bond issuance, in particular, is expected to ease the burden on retirees and reinforce confidence in Nigeria’s economic management strategies.
Source: BUSINESS DAY