In a significant move aimed at addressing the long-standing issue of pension arrears, the Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to settle outstanding payments owed to retired public servants.
The decision, which was announced following the council’s meeting on Wednesday, underscores the government’s commitment to resolving one of the most pressing financial grievances affecting Nigeria’s elderly population.
The approval comes after years of advocacy by retirees and labor unions, who have consistently highlighted the adverse effects of delayed pension payments on the well-being of former civil servants. According to sources familiar with the deliberations, the bond issuance is part of a broader strategy to clear existing liabilities and establish a more sustainable framework for managing pension obligations in the future.
Speaking to reporters after the FEC session, the Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, emphasized the importance of the initiative. “This approval reflects our administration’s unwavering dedication to honoring its commitments to retired workers,” she said. “We recognize the critical role these individuals played in building this nation, and it is imperative that we fulfill our obligations to them.
“The bond will be issued through the Debt Management Office (DMO), which will oversee the allocation of funds to ensure timely and transparent disbursement to eligible retirees.”
Officials noted that the process would prioritize those whose claims have been verified and documented, ensuring that resources are directed to those in greatest need.
Critics, however, have raised concerns about the potential impact of additional debt on the country’s already stretched fiscal position. Nigeria’s debt-to-GDP ratio has been a subject of scrutiny, particularly as the government grapples with rising expenditures and sluggish economic grow
Labour leaders welcomed the development but urged the government to expedite implementation. “While we applaud this step, it is crucial that the funds reach retirees without further delays or bureaucratic hurdles,” said a representative of the Nigerian Labour Congress (NLC). “Our members have waited far too long for justice, and any further postponement would be unacceptable.
“Analysts predict that the resolution of pension arrears could have positive ripple effects across the economy, boosting consumer spending and enhancing social stability. However, they caution that lasting solutions will require deeper reforms to the pension system, including improved funding mechanisms and enhanced oversight.
As the government moves forward with the bond issuance, all eyes will be on its ability to deliver on its promises and restore trust among retirees who have long borne the brunt of systemic inefficiencies. For many, this marks a hopeful turning point in their decades-long struggle for financial security in retirement.
