The Federal Government has settled N39.6 billion in outstanding pension liabilities, bringing long-awaited relief to thousands of retirees under the defined benefit scheme.
The announcement was made on Friday in Abuja by Efe Ovuakporie, Head of Information and Public Relations at the Federal Ministry of Finance, following a briefing between the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya.
Ms Odunaiya revealed that the payments address inherited pension obligations owed to retirees of defunct public enterprises and financial institutions. The breakdown includes N25.05 billion to clear 35-month arrears for 9,675 eligible pensioners of the former NITEL and MTEL, while N9.48 billion constitutes the first 50 per cent payment of backend computation arrears for 3,959 PHCN pensioners.
Additionally, N5.09 billion settled the balance of pension increment arrears owed to 11,180 retirees from Assurance Bank, NICON, NITEL and People’s Bank.
Presidential approval for the disbursement was granted in August 2025, with funding provided under the 2026 Appropriation Act. Ms Odunaiya confirmed that all inherited pension liabilities under the defined benefit scheme have now been cleared.
Mr Oyedele commended PTAD for the successful execution of the exercise, describing it as a testament to the government’s commitment to responsible fiscal management. He noted that the payments restore confidence and dignity to pensioners while reaffirming the administration’s resolve to honour its obligations sustainably.
The Minister reiterated his support for reforms aimed at strengthening public financial management and improving pension administration nationwide. He emphasised that the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which prioritises pensioner welfare and public confidence in governance.