The Pension Transitional Arrangement Directorate (PTAD) has executed a landmark financial intervention, disbursing ₦55.9 billion in December 2025 to settle monthly pensions and long-standing arrears for retirees under the Defined Benefits Scheme (DBS).
This massive payout, confirmed by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, comprises ₦13.41 billion in regular monthly obligations and ₦42.5 billion dedicated specifically to accumulated liabilities. The move is seen as a pivotal step in the Federal Government’s effort to restore the credibility of a pension segment that has historically struggled with funding gaps and data inaccuracies.
The settlement successfully addresses several critical categories of debt, most notably the liabilities arising from the ₦32,000 pension increment, as well as the 10.66% and 12.95% statutory pension increases.
According to the Directorate, the ₦32,000 increment arrears have now been fully cleared across all departments, with the exception of a single month’s outstanding payment for pensioners within the Parastatals, Tertiary Education, and Health departments. This intervention also covered outstanding gratuities and death benefits for next-of-kin, providing much-needed relief to thousands of Nigerian households.
Executive Secretary of PTAD, Tolulope Odunaiya, emphasized that this disbursement aligns with President Bola Ahmed Tinubu’s “Renewed Hope Agenda,” which prioritizes social protection for senior citizens. By leveraging digital payment systems and rigorous verification exercises, PTAD aims to move toward a “zero-arrears” status, ensuring that future payments remain predictable and transparent.
The Civil Service Pension Department alone accounted for ₦16.36 billion of the total, benefiting over 71,000 pensioners and highlighting the government’s focus on the largest segment of pre-2004 retirees.
While policy analysts acknowledge the fiscal challenge of funding DBS obligations alongside rising public debt, they maintain that regular pension payments are vital for maintaining public trust.
Stakeholders have lauded the Directorate’s improved data management, which has been instrumental in identifying eligible beneficiaries and preventing the re-accumulation of debt. With the bulk of the arrears now settled, PTAD is expected to focus on the final resolution of the remaining parastatal increments in early 2026.
 has executed a landmark financial intervention, disbursing ₦55.9 billion in December 2025 to settle monthly pensions and long-standing arrears for retirees under the Defined Benefits Scheme (DBS).){kind=link}