The Federal Executive Council (FEC) has authorized the issuance of a ₦758 billion bond by the Debt Management Office to settle the backlog of pension liabilities for all pensioners.
The decision was made during a meeting chaired by President Bola Tinubu. Finance Minister Wale Edun explained that the bond would provide significant relief to beneficiaries under the defined benefit system, which was replaced by the contributory pension scheme in 2004 and updated in 2014.
The defined benefit scheme requires periodic adjustments to reflect wage increases. Additionally, the FEC approved a €30 million loan with the French Development Agency to support student accommodation projects.
