Nigeria In One Minute
Pension arrears: FG to raise N800bn via promissory note
The Federal Government may raise a promissory note amounting to N800 billion to offset pension arrears of retired federal workers, New Telegraph has learnt.
A promissory note is a legal instrument (more particularly, a financial instrument and a debt instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time.
It was gathered that the government was bothered with the pileup of backlog of arrears of pension liability owed retired Federal Government employees and had consented to raising a promissory note or bond through the Debt Management Office (DMO) for its clearance.
In a related development, pensioners of National Insurance Corporation of Nigeria (NICON) have been payrolled by Pension Transitional Arrangement Directorate (PTAD) to begin a formal draw of monthly pension this month (September) in line with Defined Benefit Scheme (DBS) of PTAD, another source told New Telegraph correspondent.
The former government insurance company was privatised 13 years ago. Aside of Bureau of Public Enterprises’ (BPE) severance payoff 13 years ago, there had been unpaid pension arrears on Federal Government’s neck as pension liability.
New Telegraph, September 24, 2018
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