The Federal Government has cleared over N39.6 billion in outstanding pension liabilities owed to thousands of retirees under the Defined Benefit Scheme (DBS), bringing relief to pensioners of defunct public institutions including NITEL, MTEL, PHCN, Assurance Bank, NICON and the former People’s Bank of Nigeria.
The payment, facilitated through the Pension Transitional Arrangement Directorate (PTAD), is part of President Bola Ahmed Tinubu’s Renewed Hope Agenda aimed at addressing inherited pension obligations and improving the welfare of retired public servants.
According to a statement issued by PTAD on Friday, the government settled N25.05 billion representing a 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL, while N9.48 billion was released as the initial 50 per cent payment of Back-End Computation (BEC) arrears to 3,959 eligible PHCN pensioners.
The government also paid N5.09 billion, representing the outstanding 50 per cent balance of pension increment arrears arising from the 10.66 per cent and 12.95 per cent pension adjustments due to 11,180 retirees of Assurance Bank, NICON, NITEL and the former People’s Bank.
PTAD described the development as a major milestone in the Federal Government’s efforts to safeguard the welfare and dignity of pensioners.
“These landmark achievements mark yet another significant milestone in the Federal Government’s unwavering commitment to safeguarding the welfare and dignity of DBS pensioners,” the statement said.
The Directorate noted that the payments demonstrate the Tinubu administration’s commitment to social protection and inclusive governance.
Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, commended President Tinubu for providing the support needed to resolve the long-standing liabilities.
She said, “The Directorate expresses profound appreciation to His Excellency, President Bola Ahmed Tinubu, for his steadfast support and visionary leadership, which have continued to strengthen DBS pension administration and restore confidence in the Defined Benefit Pension Scheme.”
Odunaiya added that the settlement effectively brings to an end all inherited pension liabilities under the Directorate’s management, providing lasting relief to thousands of retirees who had waited years for their entitlements.
According to her, the payments were made possible following presidential approval granted to PTAD in August 2025, while the necessary funding was subsequently provided under the 2026 Appropriation Act.
She stressed that the successful liquidation of the liabilities underscores the Federal Government’s determination to sustain pension reforms and ensure retirees receive their benefits promptly.
“The successful liquidation of these liabilities underscores the Federal Government’s resolve to sustain pension reforms and ensure that DBS pensioners receive their rightful entitlements in a timely manner, consistent with the objectives of the Renewed Hope Agenda,” she said.
PTAD also thanked affected pensioners for their patience during the period the liabilities remained unpaid, assuring them of its continued commitment to transparent, efficient and pensioner-focused service delivery.
The Directorate reiterated that it would continue to work towards strengthening pension administration while supporting the Federal Government’s broader objective of protecting the welfare and dignity of senior citizens across the country.
The Pension Transitional Arrangement Directorate was established by the Federal Government to manage pension payments for retirees under the old Defined Benefit Scheme who are not covered by the Contributory Pension Scheme.
Over the years, PTAD has been responsible for verifying pensioners, eliminating fraudulent claims and settling outstanding pension obligations inherited from various defunct government agencies and parastatals.
The latest settlement is one of the largest pension liability clearances undertaken under the current administration and is expected to significantly improve the welfare of thousands of retirees and their families.
