The Federal Government has cleared more than ₦39.6 billion in long-standing pension liabilities owed to over 24,800 retirees under the Defined Benefit Scheme (DBS), settling outstanding arrears for former employees of the defunct NITEL/MTEL, PHCN and other federal agencies and parastatals.
The Pension Transitional Arrangement Directorate (PTAD) announced the payments in a statement on Friday, saying the disbursements formed part of the Federal Government’s efforts to clear inherited pension liabilities and improve the welfare of retirees.
According to the Directorate, the payments fulfil President Bola Ahmed Tinubu’s commitment under the Renewed Hope Agenda to liquidate outstanding pension obligations and strengthen social protection for retired public servants.
NITEL/MTEL Pensioners: ₦25.05bn Settlement
PTAD said ₦25.05 billion was paid to settle 35 months of outstanding pension liabilities owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.
The payment settles 35 months of unpaid pension liabilities owed to the affected retirees, bringing an end to one of the Directorate’s largest inherited pension obligations.
PHCN Pensioners: ₦9.48bn Back-End Computation Payment
The Directorate also disbursed ₦9.48 billion, representing the initial 50 per cent payment of the Back-End Computation (BEC) arrears due to 3,959 eligible Defined Benefit Scheme pensioners of the defunct Power Holding Company of Nigeria (PHCN).
The payment represents the first half of the Back-End Computation arrears approved for eligible PHCN pensioners.
Assurance Bank, NICON, NITEL, People’s Bank Pensioners: ₦5.09bn Arrears Payment
PTAD further paid ₦5.09 billion, representing the balance of the 50 per cent payment of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible Defined Benefit Scheme pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
The payment covers the outstanding balance of the approved pension increment arrears due to the affected beneficiaries.
How the Settlement Was Funded
Explaining how the payments were made possible, PTAD Executive Secretary, Tolulope Odunaiya, said the settlements followed presidential approval granted to the Directorate in August 2025, with the required funding subsequently appropriated under the 2026 Appropriation Act.
She said the payments had enabled PTAD to clear all inherited pension liabilities under its management, providing lasting relief to thousands of Defined Benefit Scheme pensioners.
According to Odunaiya, the successful liquidation of the liabilities underscores the Federal Government’s commitment to sustaining pension reforms and ensuring pensioners receive their rightful entitlements in a timely manner.
She expressed appreciation to President Bola Ahmed Tinubu for his support and leadership, which she said had strengthened the administration of the Defined Benefit Scheme and restored confidence in the pension system.
Odunaiya thanked affected pensioners for their patience throughout the period the liabilities remained outstanding and reaffirmed PTAD’s commitment to efficient, transparent and pensioner-centred service delivery.
She described the settlement as a major milestone in the Federal Government’s efforts to strengthen pension administration and ensure that retirees receive the benefits due to them.
