.Secures €30m loan for students’ housing
.FG to take over uncompleted Lagos-Ibadan highway sections by April
Deji Elumoye in Abuja
The Federal Executive Council (FEC) on Tuesday approved the issuance of a N758 billion bond to offset outstanding pension liabilities for all categories of federal pensioners.
The approval, granted during day two of the FEC meeting at the State House, Abuja, will allow the Debt Management Office (DMO) to raise funds needed to settle pension arrears under the Defined Benefit Scheme—the system that preceded the current contributory pension scheme introduced in 2004 and amended in 2014.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who made this disclosure to newsmen after the meeting chaired by President Bola Tinubu, explained that the move would address the financial burden faced by retirees owed backlog of entitlements.
According to him, under the old Defined Benefit Scheme, some pensioners who had not yet retired required top-ups to their benefits whenever wage increases occurred, typically every five years.
His words: “Equally important and addressing the 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 758 billion naira.
“And that is to clear up the backlog of pension liabilities owed various categories of pensioners who are owed funds under the defined benefit system that preceded the defined contributory pension scheme that came into force in 2004 and of course, was updated with a new act in 2014.
“There were some accrued liabilities which were building up over time. So, for example, someone who was on a 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.
“So this liability that built up to a point where it was not going to be easy to pay them down on an ongoing basis, and so to clean up that important area and to give people their right, which is payment of the pension liabilities as and 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”.
FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support students accommodation projects.
The financing will be implemented in collaboration with Family Homes Limited, the government’s partner for the initiative.
The concessional loan is expected to improve student housing conditions across the country, aligning with the administration’s commitment to enhancing educational infrastructure.
According to Edun: “I will just highlight particular approvals. First of all, a €30 million financing, long term concessional financing by a Axon France, the French Development Agency, which is supporting student housing in conjunction with family homes formed limited 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.
“We all know what an important intervention that is for the educational sector and for students, given the shortage”, he said
On the economic growth and economic resilience side, the Minister said, “an approval has been given for the all important National Single Window Project. So the technology providers, the hardware suppliers, have been approved for implementation of 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 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.
“Why that is particularly important, we are all seeing that the world is moving away from open trade, from the rules based world trade organization led, world trading environment is moving to a more closed environment, and so the regional and the continental markets will be that more much more important for Nigeria.
“Finally, we also commented that given the plethora, the large amounts of approvals which were given today, that there was the assurance also given that the economic management team is going to harmonize, synthesize, synchronize, and very much prioritize in an orderly fashion, these different approvals in line with Mr. President’s priorities.
“First of all, to attract investment that will grow the economy and create jobs and reduce poverty, but more importantly, to also focus on his immediate priorities for stabilizing for now, implementing what will strengthen the Nigerian economy and grow it and create jobs in the near term.
“Such as, strengthen food security, enhancing fiscal the fiscal condition, including, as we have seen, the revenue benefits that can come from the National Single window project, increased energy security, strengthen social protection, improved economic competitiveness.
“As I said earlier, and finally, timely implementation of the new national development plan, so that we all have a framework in which to implement the various programs and policies of the government, and also to be able to show to all stakeholders the direction in which the government is going, and as we clearly know, the benefits of the reforms are beginning to come through, there is greater fiscal strength, there is greater competitiveness of the Nigerian economy”, Edun further said.
Also on Tuesday, the federal government warned that it will take over any section of the Lagos-Ibadan Expressway not completed by contractors before April, 2025 as it moves to finalize the long-delayed project.
Minister of Works, Dave Umahi, who made this known to newsmen after the Federal Executive Council (FEC) meeting, said government at the centre was determined to inaugurate the project and would not tolerate further delays.
For the Lagos-Ibadan Expressway, the remaining sections will be completed by RCC and Arab Contractors, with N30 billion allocated to finalize the outstanding work.
His words: “We are poised to take over some parts of the route if they are not completed by April because we need to commission that project”.
The Lagos-Ibadan Expressway project, valued at N213 billion, was divided into two phases. Julius Berger completed the first phase, while RCC is still working on the second.
Umahi revealed that N30 billion is needed to complete the remaining sections, including an 8.55-kilometer stretch of the Lagos-bound carriageway.
“The contract value of what is left is about N4 billion and then the Lagos-bound is about 8.55 kilometer and this is what we re-scoped. That amount is N22 billion so you technically have about N30 billion, even though the total value of the project is N213 billion.
“But don’t forget that what is needed to complete that route is N30 billion and that’s Arab Contractors”, the Minister said.
In line with the Renewed Hope Agenda of reviewing, re-scoping, and prioritizing ongoing infrastructure projects, FEC also approved 14 major road contracts worth N242.148 billion across the federation
One of the projects approved is the Agaye-Kachia-Baro Road in Niger State, awarded to Messrs GR Building Construction Limited at a cost of N22 billion.
The council also approved N26.335 billion for the rehabilitation of the Odukpani Junction-Apeti section of the Calabar-Ikom-Ogoja Road in Cross River State, with Samatech as the contractor.
In Ogun State, Messrs HMF Construction Limited will handle the Abeokuta-Ajibo spur to Iyana Mosa Road for N10.89 billion.
Similarly, Niger Cat has been awarded N9.33 billion to construct the Inoma-Iyaka-Abaji section of the Ibaji-Odulu-Ajibu Road in Anambra State.
For the Umuahia-Ikot Ekpene Road, Umuahia-Umudike in Abia State, the contract has been awarded to Heartland Construction Company at N14.37 billion.
Another major project is the Kaduna-Jos Road (Phase One) in Kaduna and Plateau States, which Setraco will execute for N33.423 billion.
The Yola-Fufore-Gurin Road in Adamawa State was also approved, with Wis China Worldwide Engineering Limited handling the N11.81 billion contract.
In Ogun State, N13 billion has been allocated for the Ijebu-Igbotita Road.
In Taraba State, Messrs Mode Limited will construct Lamido Road for N7.68 billion.
The Nkomoro-Isu Road in Enugu and Ebonyi States has been awarded to Arab Contractors at N14.49 billion, while the Ikot-Ekpene Border-Aba-Owerri Road Dualization was also approved for N11.55 billion, with Arab Contractors handling the project.
The Gashi-Bayamari Road (Section 2) in Yobe State has been awarded to Rick-Rock for N9.68 billion.
Additionally, Arab Contractors will execute the Ikorodu-Shagamu Road in Lagos State for N27.59 billion.
Umahi also disclosed that FEC stepped down a proposal for the construction of the Federal Roads Maintenance Agency (FERMA) headquarters, directing further research before reconsideration.
He reaffirmed the administration’s commitment to fast-tracking road infrastructure across the country, ensuring timely completion of key projects, and delivering on President Tinubu’s infrastructure renewal drive.
