The Federal Government, through the Pension Transitional Arrangement Directorate (PTAD), has cleared over N39.6 billion in long-standing pension arrears, settling inherited liabilities for 24,814 eligible retirees under the Defined Benefit Scheme (DBS).
According to a statement released on Friday, signed by Olugbenga Ajayi, Head, Corporate Communications, PTAD, the payment fulfils President Bola Ahmed Tinubu’s commitment under his Renewed Hope Agenda to liquidate inherited pension obligations.
Breakdown of the N39.6 billion Settlement
According to the statement, the payments covered three categories of pensioners from defunct public enterprises and financial institutions:
N25,053,703,604.12 represents the outstanding 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL.
N9,481,886,576.53 as the initial 50 per cent payment of Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners.
N5,094,784,054.27 represents the balance 50 per cent payment of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL, and People’s Bank of Nigeria.
PTAD Executive Secretary, Mrs Tolulope Odunaiya, disclosed that the settlement followed presidential approval granted to the Directorate in August 2025, with the required funding subsequently appropriated under the 2026 Appropriation Act.
According to her, the exercise has now brought to a close all inherited pension liabilities under the Defined Benefit Scheme, providing long-awaited relief to thousands of pensioners who had waited years to receive their entitlements.
Commending PTAD for the successful execution of the exercise, the Minister of Finance said the settlement demonstrates the Federal Government’s resolve to address longstanding obligations through prudent fiscal management and responsible governance.
“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity,” Oyedele said.
READ ALSO:
- PenCom Cracks Down on PFAs, Orders Immediate Reclassification of Personal Pension Contributions
- 23 States Yet to Adopt Pension Law, Leaving Retirees at Risk — PenCom
- NPF Pensions Simplifies Customer Engagement with New WhatsApp Service Platform
- CBN Reshuffles Top Leadership, Redeploys Deputy Governors
- Fidelity Profit Drops to ₦242bn as Derivatives Weigh on Earnings
- Lafarge Africa Clears Debt, Posts ₦222bn Net Cash as Profit Jumps 173%
The minister reaffirmed that the Ministry of Finance would continue to support measures that strengthen public financial management while ensuring that government obligations are met in a sustainable and timely manner.
PTAD Expresses Gratitude to Pensioners
Speaking on the development, Odunaiya expressed the Directorate’s profound appreciation to President Tinubu for his steadfast support and visionary leadership, which have continued to strengthen DBS pension administration and restore confidence in the Defined Benefit Pension Scheme.
She noted that under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of DBS Pensioners.
“The successful liquidation of these liabilities underscores the Federal Government’s resolve to sustain pension reforms and ensure that DBS Pensioners receive their rightful entitlements in a timely manner, consistent with the objectives of the Renewed Hope Agenda,” she stated.
The Directorate also appreciated all affected DBS 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 DBS Pensioners.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X