The Federal Executive Council (FEC), yesterday, gave approval to the Debt Management Office (DMO) to raise a N758 billion bond to clear the backlog of pension liabilities for all categories of pensioners.
 
FEC approved a €30 million long-term concessional financing by the French Development Agency (FDA), to support students in the area of accommodation, in conjunction with Family Homes Limited (FHL), as the partner and implementer.
 
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this while briefing newsmen at the end of the FEC meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
 
The council also approved N242.68 billion for the re-scoping, rehabilitation and construction of 14 critical road projects across various states.  Edun said the N758 billion would provide relief to the beneficiaries, who were owed funds under the defined benefit system that preceded the Contributory Pension Scheme (CPS), which came into force in 2004 and updated with a new act in 2014.
 
He explained that people, who were on a defined benefit scheme and yet to retire would need a top-up of their contributions or the amount due to them every time there was a wage increase every five years.
 
The minister said: “This liability built up to a point where it was not going to be easy to pay them down on an ongoing basis. So, to clean up that important area and to give people their right, which is the payment of pension liabilities as and when due, the government has put in place an approval for the DMO to raise N758 billion that will pay down all these liabilities and, of course, be a tremendous relief to the beneficiaries.
 
“I will just highlight particular approvals. First, a €30 million financing, long-term concessional financing by Axon France, FDA, which is supporting students’ housing in conjunction with Family Homes as the partner and implementer. It is for tertiary student accommodation at project sites throughout the country to provide sustainable and clean energy-based accommodation for students.”
 
On the economic growth and resilience side, he said, “An approval has been given for the all-important National Single Window Project. So the technology providers and hardware suppliers have been approved for implementation of the project.
 
“Some aspects will take 12 months for delivery of the hardware and complete implementation, including the software solutions, and the technology solutions and E-government solutions will take up to 24 months. This project speaks to improving the economic competitiveness and international ability to export efficiently, as well as the Nigerian economy. It also speaks to increasing government revenue.”

MINISTER of Works, Dave Umahi, after the FEC meeting, said the approvals align with the government’s policy of reviewing and prioritising ongoing inherited projects under the Renewed Hope Agenda.
 
Breaking down the projects and their allocations, the minister noted that Agaie-Katcha-Baro Road in Niger State was awarded to Messrs GR Building Construction Limited at N22 billion; Odukpani Junction (Calabar-Ikom-Ogoja Road), Cross River State was awarded to Samatech at N26.335 billion; Ajaokuta-Ajibo Road and Iyana Mosa Road, Ogun State worth N10.89 billion was awarded to Messrs HM Construction Limited; Inoma-Iyaka-Abaji Section of Ibaji-Odulu-Ajibu Road, Anambra State awarded to Niger Cat at N9.33 billion and Umuahia-Ituano-Ikot Ekpene Road, Umuahia Emudike Section worth N14.37 billion was awarded to Heartland Reckon Construction Company, among others.
 
Umahi further disclosed that the council approved N7 billion for the re-scoping of the AK Bypass by Ghitto Construction Limited.  He, however, said a proposal for the construction of the Federal Roads Maintenance Agency (FERMA) headquarters was stepped down, pending further research and review. The minister emphasised the urgency of completing certain major roads by April, including the Lagos-Ibadan Road, to meet commissioning deadlines.