The Federal Government has settled over N39 billion in outstanding pension obligations owed to thousands of retirees under the Defined Benefit Scheme, bringing to an end years of unpaid liabilities inherited from previous administrations.
The Pension Transitional Arrangement Directorate announced the development on Friday, stating that the payments fulfil President Bola Tinubu’s pledge to clear longstanding pension obligations.
According to the directorate, the beneficiaries include pensioners of the defunct Nigerian Telecommunications Limited, Mobile Telecommunications Limited, Power Holding Company of Nigeria, Assurance Bank, NICON and the defunct People’s Bank of Nigeria.
PTAD explained that the disbursement comprises N25.05 billion for the settlement of 35 months’ pension arrears owed to 9,675 eligible retirees of the defunct NITEL/MTEL. It also includes N9.48 billion, representing the first 50 per cent payment of Back End Computation arrears due to 3,959 eligible PHCN pensioners, while N5.09 billion was paid as the outstanding balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of Assurance Bank, NICON, NITEL and People’s Bank.
PTAD described the payments as a significant step in the Federal Government’s drive to enhance the welfare of retirees in line with the Renewed Hope Agenda.
Speaking on the development, the Executive Secretary of PTAD, Tolulope Odunaiya, commended President Bola Tinubu for his continued support of pension administration.
She said, “These landmark achievements mark yet another significant milestone in the Federal Government’s unwavering commitment to safeguarding the welfare and dignity of Defined Benefit Scheme pensioners. It is a clear demonstration of the visionary leadership of His Excellency, President Bola Ahmed Tinubu, whose Renewed Hope Agenda places priority on social protection, inclusive governance, and the well-being of senior citizens.”
Odunaiya noted that the settlement of the inherited liabilities had strengthened confidence in the Defined Benefit Scheme after years of unresolved obligations.
“Under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of Defined Benefit Scheme pensioners,” she said.
She disclosed that the payments became possible following presidential approval granted to the directorate in August 2025, while the necessary funding was subsequently provided through the 2026 Appropriation Act.
According to her, “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, consistent with the objectives of the Renewed Hope Agenda.”
Odunaiya also appreciated the affected pensioners for their patience throughout the period the liabilities remained unsettled.
“The Directorate sincerely appreciates all affected Defined Benefit Scheme pensioners for their patience and confidence throughout the period the liabilities remained outstanding. PTAD remains dedicated to sustaining efficient, transparent and pensioner-centred service delivery, reinforcing the Federal Government’s commitment to safeguarding the dignity and well-being of all Defined Benefit Scheme pensioners,” Odunaiya said.
The latest payment forms part of the Federal Government’s broader efforts to clear inherited pension obligations and reinforce confidence in the country’s pension administration system.
