The Federal Government has paid over N39 billion in long-standing pension liabilities to thousands of retirees under the Defined Benefit Scheme, in what it described as a major step towards clearing inherited pension debts.
The Pension Transitional Arrangement Directorate announced the development on Friday, saying the payments were made following President Bola Tinubu’s approval to offset outstanding pension obligations.
According to PTAD, the beneficiaries include pensioners of the defunct Nigerian Telecommunications Limited and its subsidiary, Mobile Telecommunications Limited, the Power Holding Company of Nigeria, Assurance Bank, NICON, and the defunct People’s Bank of Nigeria.
A breakdown of the disbursement showed that N25.05bn was paid to settle 35 months of pension arrears owed to 9,675 eligible NITEL/MTEL pensioners.
The agency also disclosed that N9.48bn was released as the first 50 per cent payment of Back End Computation arrears to 3,959 eligible PHCN retirees.
In addition, N5.09bn was paid as the outstanding balance of the 10.66 per cent and 12.95 per cent pension increment arrears for 11,180 eligible retirees from Assurance Bank, NICON, NITEL and People’s Bank.
PTAD described the payment as a significant milestone under the Federal Government’s efforts to improve the welfare of pensioners and restore confidence in the Defined Benefit Scheme.
The Executive Secretary of PTAD, Tolulope Odunaiya, said the settlement reflected the government’s commitment to sustaining pension reforms and ensuring retirees receive their entitlements without undue delay.
She explained that the payments were made following presidential approval granted in August 2025, with the funds provided through the 2026 Appropriation Act.
“The successful liquidation of these liabilities underscores the Federal Government’s resolve to sustain pension reforms and ensure that Defined Benefit Scheme pensioners receive their rightful entitlements in a timely manner,” Odunaiya said.
She commended the affected pensioners for their patience over the years and reaffirmed the directorate’s commitment to transparent, efficient and pensioner-focused service delivery.
The latest disbursement forms part of the Federal Government’s ongoing efforts to clear inherited pension obligations and strengthen pension administration for retirees under the Defined Benefit Scheme.
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