The Nigerian government has authorized the Debt Management Office, DMO, to raise a ₦758b federal bond to settle outstanding payments owed to retirees under the pre-2004 pension system before the switch to the Contributory Pension Scheme (CPS).
The approval aims to provide relief to thousands of pensioners, ensuring timely payment of their entitlements.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun made this known after the Tuesday FEC briefing held at the State House, Abuja.
Edun explained that liabilities accrued over time due to periodic wage adjustments, with top-up payments required for retirees under the old system.
Trade process
The Minister said the Council also approved the implementation of the National Single Window Project, a key initiative designed to streamline Nigeria’s trade processes and enhance international competitiveness.
The project, which will take 12 to 24 months to fully implement, includes the delivery of hardware, software, and e-government solutions.
According to Edun, “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.
The Minister said the project aligned with Nigeria’s strategic push under the African Continental Free Trade Agreement (AfCFTA) to become a dominant player within ECOWAS and the African continent.
Edun further emphasised that the economic management team would harmonise the newly approved projects to ensure they align with President Tinubu’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 said; “The benefits of the reforms are already becoming evident, with signs of greater fiscal strength and competitiveness emerging.”
Student housing shortages
In its catalogue of critical approvals granted during Tuesday FEC, the Council also approved an initiative aimed to tackle student housing shortages.
The Minister of Finance said “the Council approved a €30 million (approximately N24.7 billion) long-term concessional loan from the French Development Agency to support tertiary students accommodation.
According to him, the initiative, in collaboration with Family Homes Fund Limited, will deliver sustainable, clean-energy-based housing solutions at multiple project sites across the country.
“This intervention is critical given the acute shortage of student housing in tertiary institutions,” Edun added.
Mercy Chukwudiebere
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