Federal Government has cleared N39.6 billion in longstanding pension arrears, bringing relief to thousands of retirees under the Defined Benefit Scheme (DBS).
The development was disclosed on Friday July 3 in Abuja 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, Mr Taiwo Oyedele.
A statement issued by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie, said the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions.
According to Odunaiya, N25.05 billion was used to settle 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.
She added that N9.48 billion represented the first 50 per cent payment of Back End Computation arrears for 3,959 eligible pensioners of the Power Holding Company of Nigeria (PHCN).
The PTAD Executive Secretary further disclosed that N5.09 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.
Odunaiya said presidential approval for the payments was granted in August 2025, while the required funding was provided under the 2026 Appropriation Act.
She noted that the disbursements had cleared all inherited pension liabilities under the Defined Benefit Scheme, ending years of outstanding obligations to affected retirees.
Speaking after the briefing, Oyedele commended PTAD for the successful execution of the exercise, describing it as a demonstration of the Federal Government’s commitment to responsible fiscal management.
He said the settlement of the arrears would restore confidence and dignity to pensioners while reaffirming government’s determination to meet its obligations in a sustainable manner.
The minister also reiterated the government’s support for reforms aimed at strengthening public financial management and improving pension administration across the country.
According to him, the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda, which seeks to improve the welfare of pensioners and enhance public confidence in government institutions.
