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FG Approves N758 Billion to Pay Off Pension Debts—Here’s When Retirees Will Get Paid

By Achimi Muktar

Abuja—In a major financial relief for retirees, the Federal Executive Council (FEC) has approved a N758 billion bond to clear pension arrears, putting an end to years of uncertainty for thousands of pensioners. The approval, granted during a high-level FEC meeting at the State House, Abuja, mandates the Debt Management Office (DMO) to raise the funds, ensuring long-overdue payments are made to beneficiaries under the Defined Benefit Scheme.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized that this move would erase the financial backlog affecting retirees who were part of Nigeria’s pension system before the 2004 Contributory Pension Scheme was introduced.

"There were some accrued liabilities that built up over time, making it difficult to pay them down on an ongoing basis. This bond will clear all outstanding pension liabilities and provide tremendous relief to the beneficiaries," Edun assured.

According to the minister, the backlog of payments had been growing over the years due to periodic wage increases, which required pension adjustments. The new funds will ensure pensioners receive their rightful payments without further delays.

The FEC didn’t stop at pensions. It also approved a €30 million concessional loan from the French Development Agency (AFD) to improve student housing across Nigerian tertiary institutions. This funding will be implemented in partnership with Family Homes Limited, the government’s designated development partner.

"This project will provide sustainable and clean energy-based accommodation for students in tertiary institutions nationwide," Edun said. The initiative aligns with President Bola Ahmed Tinubu's commitment to improving educational infrastructure and student welfare.

Another landmark approval from the FEC meeting was the National Single Window Project, a digital trade and customs platform designed to improve Nigeria’s economic competitiveness by streamlining export and import processes.

The technology providers and hardware suppliers for the project have been approved, and implementation will take between 12 to 24 months. Edun described the initiative as a game-changer that will enhance Nigeria’s ability to trade internationally, increase government revenue, and boost economic productivity.

"With the African Continental Free Trade Agreement in place, Nigeria is striving to be a dominant player in ECOWAS and beyond," he added.

These sweeping approvals mark a bold step by the Tinubu administration to stabilize the economy, support pensioners, improve student welfare, and enhance trade efficiency. The government is prioritizing investment, job creation, and economic stability, ensuring reforms align with national development goals.

"The benefits of these reforms are already beginning to show—greater fiscal strength, improved competitiveness, and a more resilient Nigerian economy," Edun assured.

With pensioners finally set to receive their entitlements, students gaining better housing, and trade efficiency improving, Nigeria is moving toward a more structured and financially secure future.

With the DMO now responsible for raising the N758 billion, pension payments are expected to begin as soon as the bond is issued and disbursed. Retirees who have waited for years can now breathe a sigh of relief as the long-overdue pension debts are finally cleared.