NIGERIA - The Nigerian government has set aside as much as NGN80bn (US$6.2bn) for its pension system as part of its 2007 budget proposals.
"We are providing N80bn for pensions under the Pay-As-You-Go System for the 2007 fiscal year to ensure that our pensioners are paid as and when due," the government announced this week.
The government had already issued bonds to financial institutions and raised N75bn to payoff arrears of pensions owed to about 270 000 pensioners.
"Payments have commenced and all verified pensioners are presently being paid," the government said.
"We have thus laid to rest, the lingering and seemingly intractable issue of arrears of pensions. We now have a biometric database of pensioners under the pay-as-you-go system. This means that we now have a firm grip of how much is payable to each pensioner. We are also strengthening the administration of pension to ensure that going forward, pensions are paid as and when due."
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