FEDERAL GOVERNMENT TO RAISE N758BN BOND FOR BACKLOG OF PENSION LIABILITIES

The Federal Executive Council, FEC, yesterday gave approval to the Debt Management Office to raise a 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 to support students in the area of accommodation in conjunction with Family Homes Limited as the partner and implementer.

Minister of Finance and Coordinating Minister of the Economy, WALE EDUN, who disclosed this while briefing newsmen at the end of the council meeting presided over by President BOLA TINUBU at the Presidential Villa, Abuja, 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 and yet to retire would need a top-up of their contributions or the amount due to them every time there was a wage increase every five years.