The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to resolve pension liabilities, a €30 million concessional loan for student housing, and a significant investment in infrastructure across Nigeria.
N758 Billion Bond for Pension Liabilities
On Tuesday, the FEC approved a N758 billion bond issuance aimed at clearing outstanding pension liabilities owed to federal pensioners. This bond will allow the Debt Management Office (DMO) to raise the necessary funds to settle arrears under the old Defined Benefit Scheme, which was in place before the current contributory pension system was introduced in 2004.
The approval, announced by Finance Minister Wale Edun, comes as part of efforts to address pensioners’ backlog and provide financial relief. Under the old system, pensioners who had not yet retired were entitled to “top-ups” whenever wage increases occurred, typically every five years. The bond issuance will help clear these long-standing pension liabilities and ensure retirees receive the funds they are owed.
€30 Million Loan for Student Accommodation Projects
FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support student accommodation projects across the country. This loan will be implemented in partnership with Family Homes Limited and is aimed at improving housing conditions for tertiary students, addressing the severe accommodation shortage in educational institutions.
According to Minister Edun, the initiative will provide clean, energy-efficient housing for students, enhancing Nigeria’s educational infrastructure.
Approval for N203.6 Billion Infrastructure Projects in Abuja
The federal cabinet also approved N203.6 billion for six key infrastructure projects in the Federal Capital Territory (FCT), aimed at enhancing road networks and water supply while addressing erosion. Minister of State for the FCT, Dr. Mariya Bunkure, confirmed the approval, highlighting projects such as road construction in Kaura District and the rehabilitation of major roads in Maitama District.
Completion of Lagos-Ibadan Expressway
Minister of Works, Dave Umahi, also made headlines by warning contractors that any section of the Lagos-Ibadan Expressway left incomplete by April would be taken over by the federal government. Umahi emphasized that N30 billion would be allocated to finalize the remaining portions of the project.
Additional Major Road Projects Across Nigeria
In a broader push to improve the country’s road infrastructure, FEC approved 14 new road contracts worth N242.148 billion. These contracts span various regions of Nigeria, with projects like the Agaye-Kachia-Baro Road in Niger State and the rehabilitation of sections of the Calabar-Ikom-Ogoja Road in Cross River State.
Umahi reaffirmed the administration’s commitment to completing these projects on schedule to drive economic growth and improve national competitiveness.
Creative Leap Acceleration Programme (CLAP)
In addition to infrastructure projects, FEC approved the Creative Leap Acceleration Programme (CLAP), which will support Nigeria’s creative industries by providing training, funding, and networking opportunities. This initiative aims to boost the global recognition of Nigerian creators and enhance the nation’s cultural exports.
These approvals reflect the government’s ongoing efforts to address infrastructure challenges, improve education, and alleviate pension burdens, with the ultimate goal of fostering economic growth and development.
