The Federal Government has cleared nearly N39bn in long-standing pension liabilities owed to retirees under the Defined Benefit Scheme (DBS), including former employees of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), the Power Holding Company of Nigeria (PHCN), and other federal government agencies.
The Pension Transitional Arrangement Directorate (PTAD) said the payments align with President Bola Tinubu’s Renewed Hope Agenda, which prioritises the settlement of inherited pension obligations and the strengthening of social protection for retired public servants.
According to the Directorate, the largest component of the payment of N25bn covered about 35 months of outstanding pensions owed to nearly 10,000 eligible retirees of the defunct NITEL and MTEL.
PTAD also disbursed roughly N9.5bn as the first tranche of Back End Computation (BEC) arrears to about four eligible pensioners of the former PHCN.
In addition, about N5bn was paid to more than 11,000 retirees of the defunct Assurance Bank, NICON, NITEL and the People’s Bank of Nigeria, representing the outstanding balance of pension increment arrears.
Commenting on the development, PTAD Executive Secretary, Tolulope Odunaiya, described the payments as a major milestone in the Federal Government’s efforts to resolve inherited pension obligations and improve confidence in the Defined Benefit Scheme.
She attributed the settlement to presidential approval granted in 2025 and subsequent funding provided under the 2026 Appropriation Act, noting that the intervention has enabled the Directorate to clear longstanding liabilities that had affected thousands of pensioners.
Odunaiya said the successful settlement reflects the government’s commitment to sustaining pension reforms and ensuring that retirees receive their benefits promptly in line with the objectives of the Renewed Hope Agenda.
She also thanked the affected pensioners for their patience while the liabilities remained outstanding and reaffirmed PTAD’s commitment to transparent, efficient and pensioner-focused service delivery.
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