The Federal Government plans to issue bonds worth N758 billion to clear outstanding pension liabilities, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced on Tuesday in Abuja.

Speaking after the 23rd Federal Executive Council (FEC) meeting at the Aso Rock Villa, Edun explained that the debt, accumulated under the old Defined Benefit Scheme before the Contributory Pension Scheme was introduced in 2004, will be addressed through the Debt Management Office (DMO).

According to the minister, these pension arrears have built up over time due to periodic wage increases, making it difficult to settle them through regular payments. The bond issuance, he said, will provide long-overdue relief to affected pensioners.

“The government, through the DMO, has received approval to raise a Federal Government Bond of about N758bn to clear the backlog of pension liabilities,” Edun stated. “This will cover various categories of pensioners who are owed under the Defined Benefit Scheme, which was in place before the Contributory Pension Scheme came into effect in 2004 and was updated in 2014.”

He further explained that some pension obligations accrued due to adjustments in salaries every five years, requiring additional payments to retirees under the old scheme. Over time, this liability grew beyond what could be managed on an ongoing basis.

“To resolve this issue and ensure pensioners receive their rightful entitlements promptly, the government has approved this bond issuance. It will help settle all outstanding pension liabilities, bringing much-needed relief to the beneficiaries,” Edun added.