The federal government has announced the approval of N758 billion Federal Government Bond for the clearance of pension backlogs as well as a €30 million long-term concessional loan to address housing loans for students.
The Federal Executive Council (FEC) meeting chaired by President Bola Tinubu saw a series of critical approvals aimed at addressing student housing shortages, clearing pension liabilities, and boosting Nigeria’s economic competitiveness through technology-based solutions.
The minister of finance and coordinating minister of the Economy, Wale Edun, announced the approvals during a post-FEC briefing on Tuesday at the Presidential Villa .
He said the council approved a €30 million (approximately N24.7 billion) long-term concessional loan from the French Development Agency to support tertiary student 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 stated.
In a significant move to address backlogged pension liabilities under the Defined Benefit Scheme, Edun said the government authorised the Debt Management Office (DMO) to raise a N758 billion Federal Government Bond.
He said the funds will settle outstanding payments owed to retirees who were part of the pension system prior to the 2004 switch to the Contributory Pension Scheme (CPS).
Edun explained that liabilities accrued over time due to periodic wage adjustments, with top-up payments required for retirees under the old system.
“This approval will provide relief to thousands of pensioners, ensuring they receive payments as and when due,” he noted.
The minister also said FEC 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.
He said the project aligns 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 emphasiSed that the economic management team will 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.
“The benefits of the reforms are already becoming evident, with signs of greater fiscal strength and competitiveness emerging,” Edun said .
