The Federal Government has paid over N39.6 billion in outstanding pension liabilities inherited under the Defined Benefit Scheme (DBS), effectively resolving years-long pension obligations owed to thousands of retirees from several defunct public enterprises and financial institutions.
The announcement was made on Thursday during a briefing by the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, to the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.
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PTAD disclosed that the disbursement includes N25.05 billion to settle 35 months of unpaid pension arrears for 9,675 qualified pensioners of the defunct NITEL/MTEL. Another N9.48 billion represents the first 50 per cent payment of the Back End Computation (BEC) arrears for 3,959 eligible retirees of the Power Holding Company of Nigeria (PHCN). In addition, N5.09 billion was paid as the outstanding balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible pensioners from the defunct Assurance Bank, NICON, NITEL, and People’s Bank of Nigeria.
Odunaiya noted that the payments were made following presidential approval granted in August 2025, with the necessary funding provided through the 2026 Appropriation Act.
She described the exercise as the final settlement of all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited financial relief to thousands of pensioners.
Commending PTAD for successfully completing the exercise, Oyedele said the payments reflect the Federal Government’s resolve to honour longstanding commitments through sound fiscal discipline and responsible economic management.
He stated, “For many pensioners, this payment goes beyond clearing outstanding arrears; it restores confidence and preserves their dignity. The Ministry of Finance remains committed to supporting reforms that promote stronger public financial management while ensuring government obligations are fulfilled promptly and sustainably.”
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