Thousands of retirees receive relief as FG pays N39.6bn pension debt

The Federal Government has announced the payment of N39.6 billion in outstanding pension liabilities, bringing an end to years of unpaid entitlements owed to thousands of retirees under the Defined Benefit Scheme.

The Ministry of Finance disclosed the development in a statement issued on Friday in Abuja by its Head of Information and Public Relations, Efe Ovuakporie.

According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, received the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, during a briefing on the exercise.

Odunaiya explained that the funds were used to settle legacy pension obligations inherited from defunct government-owned enterprises and financial institutions.

She said the largest portion of the payment, amounting to N25.05 billion, covered 35 months of outstanding pensions owed to 9,675 qualified retirees of the former NITEL and MTEL.

She also disclosed that N9.48 billion was released as the first 50 per cent payment of Back End Computation arrears due to 3,959 eligible pensioners of the Power Holding Company of Nigeria (PHCN).

In addition, N5.09 billion was used to settle the remaining pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.

Odunaiya noted that presidential approval for the payments was granted in August 2025, while the required funds were made available through the 2026 Appropriation Act.

She said the disbursement had fully cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to affected pensioners.

Commending PTAD for completing the exercise, Oyedele described the achievement as another demonstration of the Federal Government’s commitment to prudent fiscal management.

“The payments restored confidence and dignity to pensioners while reaffirming government’s resolve to honour its obligations sustainably,” the minister said.

He also reaffirmed the administration’s support for reforms aimed at improving pension administration and strengthening public financial management across the country.

Oyedele added that the settlement of the pension arrears was in line with President Bola Tinubu’s Renewed Hope Agenda, which seeks to improve the welfare of retirees and reinforce public trust in government institutions.