The Federal Government of Nigeria (FG) has announced plans to issue N758 billion in bonds to clear outstanding pension liabilities. The initiative aims to address debts accumulated under the old Defined Benefit Scheme (DBS) before the introduction of the Contributory Pension Scheme (CPS) in 2004, according to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Edun made the announcement after the 23rd Federal Executive Council (FEC) meeting in Abuja, emphasizing that the bonds will be issued through the Debt Management Office (DMO). He explained that the pension liabilities have built up over time due to periodic wage increases, making it difficult for the government to settle them through regular budget allocations.
Long-Awaited Relief for Pensioners
The minister highlighted that resolving these debts would bring significant relief to affected retirees. “This initiative ensures that pensioners receive their rightful entitlements as and when due,” he stated, adding that the government remains committed to honoring pension obligations and maintaining financial stability.
Additional Government Approvals
The FEC also approved a €30 million concessional loan from the French Development Agency to finance sustainable, clean-energy-based student housing across Nigeria’s tertiary institutions. The loan, in partnership with Family Homes Fund Limited, aims to tackle student accommodation shortages while promoting eco-friendly living conditions.
Furthermore, the government approved the National Single Window Project, designed to streamline trade processes, enhance revenue generation, and boost Nigeria’s global competitiveness, particularly under the African Continental Free Trade Agreement (AfCFTA).
Improving Healthcare and Pharmaceutical Regulations
To strengthen Nigeria’s healthcare sector, the government ratified the African Medicines Agency Treaty, a framework aimed at improving access to high-quality medical products and creating a standardized Pan-African regulatory system. The FEC also allocated N12 billion for diagnostic equipment, including MRI and CT scanners, to be distributed among key tertiary healthcare facilities nationwide.
With these approvals, the government aims to enhance fiscal stability, strengthen infrastructure, and boost Nigeria’s long-term economic resilience.
