FG Clears N39.6bn Long-standing Pension Arrears under Defined Benefit Scheme

Nigeria's federal government has successfully cleared over 39.6 billion naira in overdue pension payments owed under the Defined Benefit Scheme. The Pension Transitional Arrangement Directorate (PTAD) confirmed the settlement of these long-standing liabilities, which had burdened thousands of pensioners for years.

Mrs. Tolulope Odunaiya, Executive Secretary of PTAD, briefed the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, on the payments. The cleared obligations include 25.05 billion naira for 9,675 former NITEL/MTEL employees, 9.48 billion naira for 3,959 PHCN pensioners, and 5.09 billion naira for 11,180 pensioners from Assurance Bank, NICON, NITEL, and People’s Bank of Nigeria.

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For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity.

These payments were made possible by presidential approval in August 2025, with funding secured through the 2026 Appropriation Act. The successful settlement marks the end of all inherited pension liabilities under the Defined Benefit Scheme. Minister Oyedele commended PTAD, stating the settlement underscores the government's commitment to addressing obligations through prudent fiscal management and responsible governance. He emphasized that this action restores confidence and dignity to pensioners, with the Ministry of Finance pledging continued support for public financial management and timely settlement of government debts.

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The Ministry of Finance will continue to support measures that strengthen public financial management while ensuring that government obligations are met in a sustainable and timely manner.