The Federal Government has disbursed more than ₦39 billion to settle inherited pension liabilities owed to thousands of retirees under the Defined Benefit Scheme (DBS), marking one of the largest pension debt clearance exercises in recent years.
The payment, which was announced on Friday by the Pension Transitional Arrangement Directorate (PTAD), covers longstanding arrears owed to pensioners of several defunct public enterprises and financial institutions, including the Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), the Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON Insurance and the defunct People’s Bank of Nigeria.
According to PTAD, the intervention fulfils the Federal Government’s commitment to addressing legacy pension obligations and improving the welfare of retirees.
A breakdown of the payments showed that ₦25.05 billion was released to offset 35 months of pension liabilities owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.
Another ₦9.48 billion was paid as the first tranche, representing 50 per cent of the Back End Computation arrears due to 3,959 eligible PHCN pensioners.
In addition, ₦5.09 billion was disbursed as the balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of Assurance Bank, NICON, NITEL and the defunct People’s Bank.
PTAD described the payments as a significant milestone in ongoing efforts to restore confidence in the administration of the Defined Benefit Scheme and eliminate inherited pension liabilities.
Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, said the payments reflected the Federal Government’s resolve to prioritise the welfare of pensioners.
“These landmark achievements mark yet another significant milestone in the Federal Government’s unwavering commitment to safeguarding the welfare and dignity of Defined Benefit Scheme pensioners. It is a clear demonstration of the visionary leadership of His Excellency, President Bola Ahmed Tinubu, whose Renewed Hope Agenda places priority on social protection, inclusive governance, and the well-being of senior citizens,” she said.
Odunaiya noted that the intervention had brought an end to years of unresolved pension obligations inherited by the Directorate.
“Under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of Defined Benefit Scheme pensioners.”
She disclosed that the payments followed presidential approval granted to PTAD in August 2025, while the required funds were appropriated in the 2026 national budget.
According to the PTAD boss, the clearance of the outstanding liabilities demonstrates the government’s commitment to sustaining pension reforms and ensuring prompt payment of retirees’ entitlements.
“The successful liquidation of these liabilities underscores the Federal Government’s resolve to sustain pension reforms and ensure that Defined Benefit Scheme pensioners receive their rightful entitlements in a timely manner, consistent with the objectives of the Renewed Hope Agenda,” she said.
Odunaiya also commended affected pensioners for their patience while efforts were made to resolve the outstanding obligations.
“The Directorate sincerely appreciates all affected Defined Benefit Scheme 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 Defined Benefit Scheme pensioners.”
The Defined Benefit Scheme covers pensioners of ministries, departments and agencies, as well as several defunct government-owned enterprises that operated before the introduction of the Contributory Pension Scheme in 2004. Over the years, many beneficiaries accumulated unpaid pension arrears arising from inherited liabilities, delayed pension increments and other legacy obligations.
The latest disbursement represents a significant step in the Federal Government’s ongoing efforts to clear outstanding pension debts, strengthen confidence in the country’s pension administration system and improve the welfare of retirees who served in the public sector.
