FEC approves N758bn bond to settle pension backlog
...As FG begins toll operations on Abuja-Akwanga-Lafia-Makurdi Road
By Seun Ibiyemi and Jabiru Hassan
The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to clear outstanding pension liabilities for all categories of pensioners, offering long-awaited relief to retirees.
The approval, granted during Tuesday’s FEC meeting at the State House, Abuja, allows the Debt Management Office (DMO) to raise the 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 disclosed this while briefing journalists after the meeting chaired by President Bola Ahmed Tinubu, said the move would address the financial burden faced by retirees awaiting their entitlements.
He explained that 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.
In a separate development, FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support student 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.
…FG begins toll operations on Abuja-Akwanga-Lafia-Makurdi Road
In a monumental step for Nigeria’s infrastructure and economic development, the Minister of Works, Senator (Engr) David Nweze Umahi, has officially launched toll operations on the 227.2km Abuja-Keffi-Akwanga-Lafia-Makurdi road corridor.
Speaking at the ceremonial flag-off, Minister Umahi, representing the Federal Government and President Bola Ahmed Tinubu, extolled the importance of this project in enhancing the economic and social vitality of Nigeria.
“On behalf of the Federal Government of Nigeria and President Bola Ahmed Tinubu, I welcome you to this landmark event in the history of our Nation’s infrastructure development,”
“Today, we embark on a journey that will preserve our infrastructure for the benefit of present and future generations,” he remarked.
The Abuja-Keffi-Akwanga-Lafia-Makurdi road corridor, a vital artery for trade, national security, and mobility, will now be subject to toll collection under a partnership agreement with China Harbour Operations and Maintenance Company Ltd (CHOMC) and Catamaran Nigeria Ltd.
This collaboration is a product of the Highways Development and Management Initiative (HDMI), a strategic move designed to address the chronic problem of deteriorating roads in the country.
Minister Umahi emphasised that the road serves as an essential conduit for the central and northern regions, linking critical zones that contribute to national growth.
“This corridor is crucial for Nigeria’s economic, social, and strategic development. It enhances trade, mobility, national security, and plays a vital role in urbanization and national cohesion,” he stated.
He further highlighted that this initiative is a testament to the government’s commitment to improving road infrastructure, with toll revenues aimed at repaying loans from the China Exim Bank used to fund the road’s rehabilitation. The last administration secured a $460.8 million loan from China Exim Bank, covering 85% of the project’s $542 million total cost.
As part of the loan agreement, the Federal Government committed to tolling the road upon completion, with revenue collected from operations to be used preferentially for the loan repayment.
The road, having been rehabilitated through a preferential credit loan from China Exim Bank, is now poised for maintenance and expansion through toll operations.
“The Federal Government, under the previous administration, executed a 25-year Toll, Operate & Maintain Concession Agreement in 2023 with CHOMC and Catamaran Nigeria Ltd. This agreement marks the first of nine road corridors slated for concessioning under the HDMI Phase 1,” said Umahi.
The move is not merely a technical upgrade but a step towards economic sustainability.
“The collection of tolls will generate much-needed revenue for the maintenance and expansion of our roads. This initiative will enhance our transport network, promote economic growth, create jobs, and develop urban and rural areas across Nigeria,” Umahi explained.
In his closing remarks, Umahi made it clear that tolling operations are central to realising a more efficient and resilient road transport system in the country.
“Toll operations are a pivotal step towards building a self-sustaining and interconnected infrastructure, supporting the ease of movement that fuels the economy,” he added.
The Minister of Works also announced the official toll order fee schedule for the Abuja-Akwanga-Lafia-Makurdi Road, as gazetted:
Saloon cars – N500; Sport Utility Vehicles (SUVs) and Jeeps – N800; Minibuses – N1,000; Multi-axle vehicles – N1,600.
He further noted that frequent users, such as commercial light vehicles classified under the Federal Highway Act, would receive a 50% discount. Additionally, tricycles, pedal vehicles, motorcycles, and other two- or three-wheeled modes of transport primarily used by disadvantaged populations would be exempt from toll charges.