The Federal Executive Council (FEC) on Tuesday gave an approval to the Debt Management Office to raise 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 (FDA) to support students in the area of accommodation in conjunction with Family Homes Limited as the partner and implementer.
Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun, disclosed this while briefing Journalists at the end of 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 yet to retire would need a top-up of their contributions or the amount due to them every time that there was a wage increase every five years.
“Secondly, and equally important, addressing the issue of social interventions regarding pensions, there was approval for the government through the Debt Management Office to raise a federal government bond of about N758 billion.
“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 that came into force in 2004 and of course, was updated with a new Act in 2014.
“There were some accrued liabilities that were building up over time. So, for example, some one 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 that there was a wage increase, every five years or so.
“So, this liability that built up to a point where it was not going to be easy to pay them down on an ongoing basis, and so 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 an approval for Debt Management Office to raise N758 billion that will pay down all these liabilities and of course, be a tremendous relief to the beneficiaries.”
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 finalized but to be implemented during the course of the year, after finalization 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 Funds Limited as the partner and implementer. “It is for tertiary student accommodation at project sites throughout the country to promote 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, the hardware suppliers, have been approved for implementation of the project. “Some aspects will take 12 months for delivery of the hardware and for complete implementation, including the software solutions and the technology solutions and the eGovernment solutions that will take up to 24 months, and this project not only speaks to improving the economic competitiveness, the international ability to export efficiently, and of the Nigerian economy.
