The Federal Government has cleared ₦39.6 billion in longstanding pension arrears owed to thousands of retirees under the Defined Benefit Scheme (DBS), bringing an end to years of unpaid pension liabilities. The payment, announced on Friday in Abuja, covers pensioners from defunct public enterprises and financial institutions and is expected to improve the welfare of affected retirees while restoring confidence in the pension system.
The development was disclosed during a briefing by the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedel. According to a statement issued by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie, the payments followed presidential approval granted in August 2025 and funding provided under the 2026 Appropriation Act.
Speaking during the briefing, Odunaiya said the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions.
She explained that ₦25.05 billion was used to settle 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.
According to her, ₦9.48 billion represents the first 50 per cent payment of Back End Computation arrears for 3,959 eligible pensioners of the Power Holding Company of Nigeria (PHCN).
Odunaiya also said ₦5.09 billion was used to clear the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL, and People’s Bank.
She added that the payments have now cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to the affected pensioners.
Reacting to the development, Taiwo Oyedel commended PTAD for successfully carrying out the exercise, saying it demonstrates the Federal Government’s commitment to responsible fiscal management.
The minister said settling the arrears restores confidence and dignity to pensioners while reaffirming the government’s commitment to meeting its obligations in a fiscally sustainable manner.
He also reiterated the government’s support for reforms aimed at strengthening public financial management and improving pension administration across the country.
Edun further stated that the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda, which seeks to improve the welfare of pensioners and strengthen public confidence in government institutions.
