The Federal Government has approved the issuance of N758 billion in bonds to clear accumulated pension debts under the old Defined Benefit Scheme.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this after the 23rd Federal Executive Council meeting in Abuja.
He explained that the debts, which built up over the years due to periodic wage increases, have placed financial strain on pensioners.
The bond issuance managed through the Debt Management Office, aims to provide long-overdue relief and restore confidence in the pension system.
He explained that the Defined Benefit Scheme, which was replaced by the Contributory Pension Scheme in 2004 and further amended in 2014, left behind liabilities owed to retirees from various sectors.
Edun assured that clearing these backlogs reflects the Government’s commitment to ensuring pensioners receive their rightful entitlements and improving social welfare.
(FRCN)
