Abuja: The Federal Government has cleared N39.6 billion in longstanding pension arrears, providing relief to thousands of retirees under the Defined Benefit Scheme (DBS). The development was announced in a statement issued by Efe Ovuakporie, Head, Information and Public Relations, Federal Ministry of Finance, when the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, received the Executive Secretary of Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, for a briefing.
According to News Agency of Nigeria, Odunaiya disclosed that the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions. She mentioned that N25.05 billion was allocated for the settlement of 35-month pension arrears owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.
Furthermore, Odunaiya noted that N9.48 billion represents the first 50 percent payment of Back End Computation arrears for 3,959 eligible PHCN pensioners. An additional 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.
She highlighted that presidential approval for these payments was granted in August 2025, with funding provided under the 2026 Appropriation Act. The payments have successfully cleared all inherited pension liabilities under the DBS, offering long-awaited relief to the affected pensioners.
Minister Oyedele praised PTAD for the successful execution of the exercise, emphasizing it as evidence of the government’s commitment to responsible fiscal management. He stated that the payments restore confidence and dignity to pensioners, while reaffirming the government’s resolve to honor its obligations sustainably.
Oyedele reiterated the government’s continued support for reforms that strengthen public financial management and improve pension administration across the nation. He added that the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda, aimed at enhancing pensioners’ welfare and boosting public confidence.