The Federal Government has paid ₦39.6 billion in outstanding pension arrears under the Defined Benefit Scheme, settling liabilities owed to more than 24,000 retirees.
The Federal Government has settled more than ₦39.6 billion in longstanding pension liabilities under the Defined Benefit Scheme (DBS), bringing to a close years of outstanding obligations owed to thousands of retired civil servants.
The disclosure was made during a briefing by the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, to the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.
Breakdown of the payments
Odunaiya informed the Minister that the payments cover three categories of beneficiaries. The first is ₦25.05 billion representing the outstanding 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL. The second is ₦9.48 billion representing the initial 50 percent payment of the Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners. The third is ₦5.09 billion representing the balance 50 percent payment of the 10.66 percent and 12.95 percent pension increment arrears due to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
She explained that the settlement followed Presidential approval granted in August 2025, with the required funding subsequently provided under the 2026 Appropriation Act.
According to Odunaiya, the exercise has brought to a close all inherited pension liabilities under the Defined Benefit Scheme, providing long-awaited relief to thousands of pensioners who had waited years for payment.
What the Minister said
Oyedele commended PTAD for the successful execution of the exercise and framed the settlement as more than a financial transaction.
“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity. 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,” he said.
The pension arrears being cleared date back to the privatisation and dissolution of several federal government enterprises, including NITEL, MTEL, PHCN, NICON, Assurance Bank and People’s Bank of Nigeria. Pensioners from these defunct institutions had in many cases waited decades for the resolution of their entitlements, with payments stalled by a combination of fiscal constraints and administrative backlogs.
The clearance of the full ₦39.6 billion liability under the 2026 Appropriation Act signals that the Federal Government has now drawn a line under the Defined Benefit Scheme’s inherited obligations, removing a source of longstanding grievance for one of the country’s most vulnerable populations.
