FG Settles N39.6 Billion in Long-Standing Pension Arrears

Nigeria's Federal Government has successfully cleared over 39.6 billion naira in long-standing pension arrears owed to thousands of retirees under the Defined Benefit Scheme (DBS). The breakthrough follows presidential approval granted in August 2025, with the necessary funds disbursed through the 2026 Appropriation Act.

Mrs. Tolulope Odunaiya, Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), announced the settlement during a visit to the Minister of Finance, Mr. Taiwo Oyedele. The payments encompass significant amounts for various groups, including 9,675 eligible pensioners of the defunct NITEL/MTEL, who received 25.05 billion naira for outstanding liabilities. Additionally, 3,959 eligible PHCN pensioners received 9.48 billion naira as an initial 50 percent payment of Back End Computation (BEC) arrears.

“

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

Further payments included 5.09 billion naira for the balance of 50 percent of pension increment arrears due to 11,180 pensioners from defunct entities like Assurance Bank, NICON, NITEL, and People's Bank of Nigeria. This comprehensive settlement marks the end of all inherited pension liabilities under the DBS, offering much-needed relief and restoring dignity to numerous retirees.

Minister Oyedele commended PTAD's efforts, emphasizing that the settlement demonstrates the government's commitment to addressing long-term obligations through sound fiscal management. He stated that the Ministry of Finance would continue to support initiatives that enhance public financial management and ensure timely, sustainable fulfillment of government commitments.

“

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.