Tinubu Writes N’Assembly to Approve Issuance of N758 Billion Bond to Settle Pensioners
President Bola Tinubu has requested the National Assembly’s approval to issue federal government bonds worth approximately N758 billion to settle outstanding pension liabilities under the contributory pension scheme.
The move, which was approved by the Federal Executive Council in February 2025, aims to clear the pension arrears accumulated due to past revenue shortfalls and improve the welfare of retirees.
The bond issuance is expected to provide a significant relief to pensioners who have been waiting for their entitlements for years.
According to sources, the N758 billion bond will be used to settle the outstanding pension liabilities as of December 2023, and will be issued in tranches to ensure that the federal government’s debt profile is managed effectively.
The bond issuance is also expected to help reduce the financial burden on the federal government, which has been struggling to meet its pension obligations.
The contributory pension scheme, which was introduced in 2004, has been plagued by funding challenges, leading to a significant accumulation of pension arrears.
The scheme, which is managed by the National Pension Commission (PenCom), has been facing difficulties in meeting its obligations due to inadequate funding and other challenges.
The President’s request for approval to issue the bond is seen as a significant step towards addressing the pension arrears issue, which has been a major concern for retirees and pensioners.
The move is also expected to boost confidence in the pension scheme and provide a sense of security for retirees who have been waiting for their entitlements.
The National Assembly is expected to consider the President’s request and provide approval for the bond issuance in the coming weeks.
If approved, the bond will be issued and the proceeds will be used to settle the outstanding pension liabilities, providing a significant relief to pensioners and retirees.
“We welcome the President’s initiative to address the pension arrears issue. The contributory pension scheme has been facing significant challenges, and the bond issuance will provide a much-needed relief to pensioners and retirees. We urge the National Assembly to expedite the approval process and ensure that the bond is issued as soon as possible,” he said.
The chairman of the Nigerian union of pensioners, Dr. Abel Afolayan
The Minister of Finance, Budget and National Planning, Mr. Wale Edun, also commented on the development, saying,
“The bond issuance is a critical step towards addressing the pension arrears issue and improving the welfare of retirees. We are committed to ensuring that the federal government meets its pension obligations, and the bond issuance will provide a significant relief to pensioners and retirees. We urge the National Assembly to approve the request and enable us to proceed with the bond issuance.”
The development is seen as a positive step towards addressing the pension arrears issue, and is expected to provide a significant relief to pensioners and retirees.
The National Assembly’s approval is eagerly awaited, and the outcome is expected to have a significant impact on the lives of millions of pensioners and retirees across the country.
