The Federal Government has cleared more than N39.63 billion in long-standing pension liabilities owed to thousands of Defined Benefit Scheme (DBS) pensioners of the defunct NITEL/MTEL, PHCN and other federal government parastatals, in a move described as a major milestone in pension administration.
The Pension Transitional Arrangement Directorate (PTAD) announced on Friday that the payments were made in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda and his commitment to settling inherited pension obligations.
According to PTAD, the government paid N25.05 billion, representing outstanding 35-month pension arrears owed to 9,675 eligible pensioners of the defunct NITEL/MTEL under the Defined Benefit Scheme.
The Directorate also disbursed N9.48 billion as the initial 50 per cent payment of the Back End Computation (BEC) arrears to 3,959 eligible PHCN DBS pensioners.
In addition, N5.09 billion was released as the balance of the 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 described the settlements as a significant achievement that reflects the Federal Government’s commitment to protecting the welfare and dignity of pensioners while strengthening confidence in the Defined Benefit Pension Scheme.
Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, commended President Tinubu for his support and leadership, noting that the administration had successfully resolved all inherited pension liabilities under the Defined Benefit Scheme.
She explained that the payments followed presidential approval granted to the Directorate in August 2025, while the required funds were appropriated under the 2026 Appropriation Act.
Odunaiya said the successful liquidation of the liabilities underscores the government’s determination to sustain pension reforms and ensure pensioners receive their entitlements promptly.
She also expressed appreciation to affected pensioners for their patience and confidence throughout the period the arrears remained unpaid.
PTAD reaffirmed its commitment to delivering efficient, transparent and pensioner-centred services in line with the Federal Government’s resolve to safeguard the welfare and dignity of retirees.
