N758bn Bond Initiative to Resolve Pension Backlog
The Federal Government of Nigeria has announced plans to issue bonds totaling ₦758 billion to address outstanding pension liabilities under the old Defined Benefit Scheme (DBS). This decision was approved during the Federal Executive Council (FEC) meeting held on February 4, 2025.
Key Details:
- Purpose of the Bond: The funds raised will be utilized to clear accumulated pension debts owed to retirees under the DBS, which predates the Contributory Pension Scheme introduced in 2004 and amended in 2014. These liabilities have accrued over time due to periodic wage increases and other factors.
- Implementation: The Debt Management Office (DMO) has been authorized to raise the ₦758 billion through bond issuance. This move aims to provide long-overdue relief to affected pensioners by ensuring they receive their entitled benefits promptly.
- Government’s Commitment: Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized that this initiative reflects the government’s dedication to honoring its obligations to retirees and addressing social welfare concerns. He noted that the approval would be a “tremendous relief to the beneficiaries.”