FEC approves issuance of N758bn bond to settle pension backlog

The federal executive council (FEC) has approved the issuance of a N758 billion bond to clear outstanding pension liabilities for all categories of pensioners, offering long-awaited relief to retirees.

Wale Edun, minister of finance and coordinating minister of the economy, spoke at the end of the meeting presided over by President Bola Tinubu on Tuesday at the presidential villa.

On January 7, some retired military personnel on Tuesday staged a protest at the entrance to the ministry of finance in Abuja over unpaid entitlement.

Prior to the protest, in December, the federal government paid 50 percent of the outstanding entitlements to retirees and assured them that the remaining balance would be settled. 

According to Edun, the approval is to address backlogged pension liabilities under the defined benefit scheme.

The minister said the government authorised the Debt Management Office (DMO) to raise a N758 billion federal government bond.

He said the funds will settle outstanding payments owed to retirees who were part of the pension system prior to the 2004 switch to the contributory pension scheme (CPS). 

Edun added that liabilities accrued over time due to periodic wage adjustments, with top-up payments required for retirees under the old system.

“This approval will provide relief to thousands of pensioners, ensuring they receive payments as and when due,” Edun said.

FEC APPROVES IMPLEMENTATION OF SINGLE WINDOW PROJECT

The minister said FEC also approved the implementation of the national single window project, a key initiative designed to streamline Nigeria’s trade processes and enhance international competitiveness. 

Edun said the project, which will take 12 to 24 months to fully implement, includes the delivery of hardware, software, and e-government solutions.

He said the project will improve the ease of doing business, facilitate faster exports, and enhance revenue generation for the government.

“It speaks to increasing government revenue, both through foreign exchange and tax collection, while improving the productivity of the Nigerian economy,” he said.

Edun said the project aligns with Nigeria’s strategic push under the African Continental Free Trade Agreement (AfCFTA) to become a dominant player within ECOWAS and the African continent.

He stressed that the economic management team will harmonise the newly approved projects to ensure they align with the president’s priorities of job creation, poverty reduction, and economic growth. 

“Immediate areas of focus include food security, fiscal sustainability, energy security, and timely implementation of the national development plan,” he added.

Edun also said the benefits of the reforms are “already becoming evident, with signs of greater fiscal strength and competitiveness emerging”.