The Federal Executive Council,, on Tuesday gave approval to the Debt Management Office to raise a N758 billion bond to clear the backlog of pension liabilities for all categories of pensioners.
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.
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.
The minister said that 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.
“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,” he said.
“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.
“There were some accrued liabilities that built up over time. So, for example, someone who was on a defined benefit scheme 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 or so.
“So, this liability built up to a point where it was not going to be easy to pay them down on an ongoing basis. To clean up that important area and to give people their right, which is payment of the pension liabilities as and when due, the government has put in place approval for the Debt Management Office to raise N758 billion to pay down all these liabilities, which will of course be a tremendous relief to the beneficiaries,” he said.
The minister said quite a large number of memos were presented for approval, which had to do with completing or implementing the draft borrowing plan yet to be finalised but to be implemented during the course of the year, after the finalisation of appropriation.
He said: “I will just highlight particular approvals. First of all, a 30 million euro financing, long-term concessional financing by Axon France, the French Development Agency, which is supporting student housing in conjunction with Family Homes Limited as the partner and implementer.
“It is for tertiary student accommodation at project sites throughout the country to provide sustainable and clean energy-based accommodation for students.
“We all know what an important intervention that is for the educational sector and for students, given the shortage.”
On the economic growth and economic resilience side, he said: “An approval has been given for the all-important National Single Window Project. So, the technology providers and hardware suppliers have been approved for the implementation of the project.
“Some aspects will take 12 months for the delivery of the hardware, and for complete implementation, including the software solutions and the technology solutions, the e-government solutions will take up to 24 months. This project not only speaks to improving economic competitiveness and the international ability to export efficiently.”
