FG Approves N758bn Bond to Settle Pension Backlog, Allocates N2.17trn Supplementary Budget

In a decisive move to address longstanding pension liabilities, the Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to clear the backlog of payments owed to pensioners under the Defined Benefit Scheme (DBS). The approval, granted during Tuesday’s Council meeting presided over by President Bola Ahmed Tinubu, marks a significant step towards financial relief for retirees who have awaited their entitlements for years.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who briefed the press after the meeting, emphasized that the funds would ensure retirees receive their rightful benefits, particularly those affected by wage increases over the years. He highlighted that while the Contributory Pension Scheme (CPS) introduced in 2004 modernized pension administration, many retirees under the previous system were left struggling with unpaid entitlements.

Beyond pension relief, the FEC also approved a N2.17 trillion 2023 supplementary budget, reinforcing the government’s commitment to stabilizing the economy and fulfilling financial obligations. The council further endorsed a €30 million concessional loan from the French Development Agency (FDA) to enhance student accommodation in collaboration with Family Homes Limited.

This latest decision reflects the Tinubu administration’s broader economic strategy of ensuring social welfare and boosting investor confidence. As Nigeria navigates economic reforms, clearing pension arrears stands as a testament to the government’s resolve to honor its commitments and uphold the dignity of its retirees.