The Federal Executive Council (FEC) on Tuesday approved 30 million Euros loan for the Federal Government, under the 2025 borrowing plans and a N758 billion bond.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, while briefing State House Correspondents after the FEC meeting presided over by President Bola Tinubu, said the 30m Euro would be sourced from the French Development Agency (AFD), specifically for the development of sustainable and clean energy-based accommodation for students, across the Country.
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He added that the Council approved the raising of a bond of N758 billion to clear pension liabilities inherited under old Pension Scheme.
The Minister, who stated that there were some accrued pension liabilities which built up and where not paid as and when due, said the fund was expected to pay all the liabilities.
Speaking on the borrowing plans, he stated that his office was working on implementing, the draft borrowing plan, which was yet to be finalised, but would be implemented in the course of the year.
He noted that FEC approved a 30 million Euro long term concessional financing by a French Development Agency (AFD), which is Supporting Student Housing in conjunction with family Homes Fund limited as the partner and implementer.
Edun said the loan for student tertiary accommodation at Project sites throughout the country, was to provide sustainable and clean energy based-accommodation for students, adding that “we all know what an important intervention that is for the educational sector and for students, given the shortage.
“An equally important issue of social interventions is one regarding pensions. There was an approval for the government through the Debt Management Office to raise a Federal Government Bond of about N758 billion.
He noted that the bond was to clear up the backlog of pension liabilities owed various categories of pensioners who were owed funds under the defined benefit system that preceded the defined contributions, the Contributory Pension Scheme that came into force in 2004 and of course, was updated with a new Act in 2014.
The fund, according to the Minister, is to address some accrued liabilities which were building up over time.
“So for example, someone who was on the defined benefit scheme yet to retire would need a top up of their contributions or the amount due to them every time that there was a wage increase, every five years or so.
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“So these 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 payment of their pension liabilities as at when due. The government has put in place an approval for Debt Management Office to raise 758 billion naira that will pay down all these liabilities and of course, be a tremendous relief to the beneficiaries”
Speaking further on the economy, Edun noted that on the economic growth and economic resilience side, an approval was also given by FEC for the all important National Single Window Project, and initiative for technology providers, the hardware suppliers, approved to implement the project.
“Some aspects will take 12 months for delivery of the hardware and for complete implementation, including the software solutions and the technology solutions and the E government solutions that will take up to 24 months and this project not only speaks to improving the economic competitiveness the international ability to export efficiently, and of the of the Nigerian economy.
“It also speaks to increasing government revenue. So it’s both on the fiscal side, it is both revenue earning in terms of Foreign exchange and in terms of government revenue, it speaks to the increased productivity of the Nigerian economy, as I said before, increased international competitiveness at a time where under the African continental Free Trade Agreement, Nigeria is pushing to be a big player, both in the ECOWAS region and in the African continent as well”, he said.
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