The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to settle outstanding pension liabilities for federal pensioners.

The approval, granted during the second day of the FEC meeting at the State House, Abuja, enables the Debt Management Office (DMO) to raise funds to clear pension arrears under the Defined Benefit Scheme (DBS), which predates the current contributory pension scheme introduced in 2004 and amended in 2014.

Additionally, FEC has approved a €30 million concessional loan from the French Development Agency (AFD) to support student accommodation projects.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced these approvals after the FEC meeting, chaired by President Bola Tinubu. He explained that the bond would ease the financial strain on retirees owed substantial pension arrears.

“There was an approval for the government, through the Debt Management Office, to raise a federal government bond of about N758 billion. This will clear pension liabilities under the defined benefit system that existed before the contributory pension scheme,” Edun said.

He noted that under the old pension system, top-ups were required whenever wage increases occurred, typically every five years. “These accrued liabilities have built up over time, and settling them with this bond will provide tremendous relief to beneficiaries,” he added.

Edun also disclosed that the €30 million concessional loan from AFD will be implemented in collaboration with Family Homes Limited, the government’s partner for student housing initiatives. The loan aims to improve student accommodation and enhance educational infrastructure.

FEC also approved the National Single Window Project, an initiative designed to enhance trade efficiency, increase government revenue, and boost Nigeria’s competitiveness in international markets. The implementation, involving both hardware and software solutions, is expected to take between 12 and 24 months.

In a separate development, FEC approved N203.6 billion for six major infrastructure projects in the Federal Capital Territory (FCT), including road construction, water supply enhancement, and erosion control. Minister of State for the FCT, Dr Mariya Bunkure, confirmed the projects, which are expected to improve the quality of life for Abuja residents.

The approved projects include:

• A N13.18 billion contract for an access road to the FCT Fire Service Institution and erosion control in Kaura District.
• A revision of the Guzape District Lot 1 infrastructure project, increasing its cost from N22.2 billion to N70.89 billion.
• A N27.6 billion contract for a seven-kilometre access road bypassing the airport’s second railway.
• A N20.4 billion contract for the rehabilitation of major roads in Maitama District.
• A N54.38 billion project for engineering infrastructure in Guzape Lot 1 and 2.
• The rehabilitation of the Lower Usuma Dam Water Treatment Plant, awarded at N17.2 billion plus $79,000.

FEC also approved the Creative Leap Acceleration Programme (CLAP), a digital platform to support Nigeria’s creative sector with training, funding, and networking opportunities. Minister of Art, Culture, and Tourism, Hannatu Musawa, announced that the initiative aims to bolster Nigeria’s global cultural presence.

She also unveiled the ‘Destination 2030 Nigeria Everywhere’ brand and a seven-part documentary series, ‘Nigeria Everywhere Shorts,’ designed to promote national identity and global recognition of Nigeria’s creative talent.