Nigeria’s Federal Executive Council approved a N758 billion bond to settle pension liabilities. This move aims to address accumulated pension arrears for retirees. Additionally, a €30 million loan for student housing and a digital trade initiative were also approved to enhance economic competitiveness.
The Federal Executive Council (FEC) of Nigeria has approved the issuance of a bond valued at N758 billion to address pension liabilities owed to retirees under the previous Defined Benefit Scheme. Finance Minister Wale Edun announced this decision, stating that the Debt Management Office (DMO) would facilitate the necessary funding to resolve years of accumulated pension arrears, benefiting numerous retirees. This initiative aims to ensure timely pension payments, which have been delayed due to past wage increases not being incorporated into pension adjustments.
Furthermore, the approval also includes a €30 million concessional loan from the French Development Agency intended to support student housing projects throughout Nigeria. This partnership with the Family Homes Fund Limited seeks to mitigate the severe insufficiency of student accommodation in tertiary institutions while encouraging sustainable housing solutions that incorporate clean energy.
In addition, the FEC endorsed the implementation of the National Single Window Project. This significant digital initiative is designed to enhance Nigeria’s trade processes, improve revenue collection, and strengthen the country’s competitive edge in global markets, specifically under the African Continental Free Trade Agreement (AfCFTA). The National Single Window will merge customs and regulatory functions into a unified digital platform, aiming for full operational capacity within two years.
The government’s economic management team, led by President Bola Tinubu, aims to align these initiatives with broader economic reform strategies. These include attracting investments, improving food and energy security, enhancing major social protection programs, and effectively executing the National Development Plan. Edun emphasized the importance of these reforms in stabilizing the economy, reducing poverty, and fostering sustainable growth, citing initial signs of fiscal improvement and enhanced competitiveness in the Nigerian economy.
The approval by the FEC marks a critical step in addressing longstanding pension liabilities that have burdened Nigeria’s retirees since the implementation of the current Contributory Pension Scheme in 2004. The delay in pension payments is often attributed to inadequate adjustments following wage reviews, highlighting the need for systematic financial interventions. Additionally, the FEC’s efforts to improve student accommodation and streamline trade processes reflect a comprehensive strategy towards economic revitalization and enhanced living conditions for citizens.
The Federal Executive Council of Nigeria has taken significant measures to alleviate pension liabilities through the approval of a significant bond issuance. In parallel, the approval of student accommodation funding and the National Single Window Project indicates a commitment to addressing crucial economic and social issues, aiming for a more efficient governance model that meets the needs of citizens while improving the overall economic landscape of Nigeria.
Original Source: www.zawya.com
