July 3 (THEWILL) — The Federal Government has settled ₦39.6 billion in longstanding pension arrears owed to thousands of retirees under the Defined Benefit Scheme (DBS), clearing all inherited pension liabilities and bringing long-awaited relief to affected pensioners.
The government said the payments covered outstanding obligations to retirees of defunct public enterprises and financial institutions, describing the exercise as a demonstration of its commitment to responsible fiscal management, pension reforms and the welfare of retirees.
The development was announced in a statement issued on Friday by the Head of Information and Public Relations at the Federal Ministry of Finance, Mr Efe Ovuakporie, following 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, Taiwo Oyedele.
According to Odunaiya, the settlement was made possible following presidential approval granted in August 2025, with funding provided under the 2026 Appropriation Act.
She disclosed that ₦25.05 billion was used to clear 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.
The PTAD boss added that ₦9.48 billion represented the first 50 percent payment of Back End Computation arrears for 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN).
She further said that ₦5.09 billion was paid to settle the outstanding balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON Insurance, NITEL and People’s Bank.
Odunaiya said the payments had now cleared all inherited pension liabilities under the Defined Benefit Scheme, ending years of uncertainty for thousands of pensioners.
She described the exercise as a major milestone in the Federal Government’s efforts to fulfil its obligations to retirees and strengthen confidence in the country’s pension administration.
Speaking during the briefing, Oyedele commended PTAD for the successful execution of the payment exercise, saying it reflected the government’s commitment to prudent fiscal management and accountability.
The minister said the settlement had restored confidence and dignity to pensioners while reaffirming the government’s resolve to meet its obligations in a sustainable manner.
He also reiterated the Federal Government’s support for reforms aimed at strengthening public financial management and enhancing pension administration across the country.
According to him, the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda, which prioritises improved welfare for pensioners and seeks to reinforce public confidence in government institutions.
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