Key points
- The Federal Government has cleared N39.6 billion in outstanding pension arrears under the Defined Benefit Scheme.
- The payments cover retirees of PHCN, NITEL, MTEL and other defunct public institutions.
- PTAD says the liabilities were funded under the 2026 Appropriation Act.
- The government says the exercise fulfils its commitment to improving pensioners’ welfare.
Main story
The Federal Government says it has cleared N39.6 billion in longstanding pension arrears owed to thousands of retirees under the Defined Benefit Scheme (DBS).
The development was disclosed on Friday during a briefing by the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs Tolulope Odunaiya, to the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, in Abuja.
According to a statement issued by the Federal Ministry of Finance, the payments cover inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions.
Odunaiya said N25.05 billion was used to settle 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.
She added that N9.48 billion represented the first 50 per cent payment of Back End Computation (BEC) arrears for 3,959 eligible Power Holding Company of Nigeria (PHCN) pensioners.
According to her, another N5.09 billion cleared the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.
Odunaiya said presidential approval for the payments was granted in August 2025, while funding was provided under the 2026 Appropriation Act.
She added that the disbursement had cleared all inherited pension liabilities under the Defined Benefit Scheme.
The minister commended PTAD for implementing the exercise, saying the payments reflected the Federal Government’s commitment to responsible fiscal management and fulfilling its obligations to pensioners.
He reaffirmed support for reforms aimed at strengthening public financial management and improving pension administration across the country.
The issues
The Defined Benefit Scheme covers pension obligations inherited from several defunct public enterprises and government institutions. Many affected retirees had waited years for the settlement of outstanding arrears. The Federal Government says the latest payments fulfil commitments under President Bola Tinubu’s Renewed Hope Agenda to improve pensioners’ welfare and restore confidence in the pension system.
What’s being said
“The payments had cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to affected pensioners.” — Tolulope Odunaiya, Executive Secretary, PTAD
“The payments restored confidence and dignity to pensioners while reaffirming government’s resolve to honour its obligations sustainably.” — Wale Edun, Minister of Finance and Coordinating Minister of the Economy
What’s next
The Federal Government says it will continue supporting reforms to strengthen pension administration and public financial management while ensuring the timely settlement of pension obligations.
Bottom line
The Federal Government has cleared N39.6 billion in outstanding pension arrears, bringing long-awaited relief to thousands of retirees and marking the settlement of inherited liabilities under the Defined Benefit Scheme.
