ABUJA โ The Federal Government has paid over N39.6 billion in longstanding pension arrears owed to retirees of defunct public enterprises and financial institutions under the Defined Benefit Scheme (DBS).
The Pension Transitional Arrangement Directorate (PTAD) announced the payments on Friday, July 3, 2026, saying more than 24,000 pensioners who had waited for years will now receive their entitlements.
PTAD Executive Secretary, Mrs. Tolulope Odunaiya, disclosed this during a briefing with the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.
According to PTAD, the disbursement covers three major categories:
- N25.05 billion for outstanding 35-month pension arrears owed to 9,675 eligible retirees of defunct NITEL/MTEL.
- N9.48 billion representing the first 50% payment of Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners.
- N5.09 billion to clear balance of pension increment arrears due to 11,180 eligible pensioners from Assurance Bank, NICON, NITEL, and Peopleโs Bank of Nigeria.
Mrs. Odunaiya explained that the settlement followed presidential approval granted in August 2025, with funding provided under the 2026 Appropriation Act.
โThese landmark achievements mark yet another significant milestone in the Federal Governmentโs unwavering commitment to safeguarding the welfare and dignity of Defined Benefit Scheme pensioners,โ she said.
โThe payments have cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to the affected pensioners,โ she added.
Minister Oyedele commended PTAD for executing the payments and described the move as proof of the governmentโs commitment to prudent fiscal management.
โFor many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity,โ Oyedele stated.
He reaffirmed governmentโs resolve to continue reforms aimed at strengthening public financial management and improving pension administration nationwide.
PTAD said the payment represents a major milestone under the Federal Governmentโs Renewed Hope Agenda to improve welfare for pensioners.
