The Federal Government under the administration of President Bola Tinubu has approved and disbursed ₦39.63 billion to settle outstanding pension liabilities owed to 24,814 eligible retirees under the Defined Benefit Scheme (DBS).
The payment was confirmed in a statement issued on Friday by the Federal Ministry of Finance. The beneficiaries include pensioners of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON Insurance and the defunct People’s Bank of Nigeria.
According to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the payment reflects the government’s commitment to improving the welfare of retired public servants and ensuring they receive the benefits they earned during their years of service.
The settlement was carried out by the Pension Transitional Arrangement Directorate (PTAD) following the minister’s directive to prioritise the clearance of verified pension obligations.
Oyedele described the exercise as a demonstration of the administration’s resolve to restore confidence in the pension system and honour the contributions of retired workers.
He noted that the payment covered three major categories of outstanding pension liabilities accumulated over several years.
Out of the total amount, PTAD paid ₦25.05 billion to clear 35 months of outstanding pension arrears owed to 9,675 eligible retirees of the defunct NITEL and MTEL.
The agency also released ₦9.48 billion, representing the first 50 per cent payment of Back-End Computation (BEC) arrears due to 3,959 eligible PHCN pensioners.
In addition, ₦5.09 billion was paid as the remaining 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible retirees from Assurance Bank, NICON Insurance, NITEL and the defunct People’s Bank of Nigeria.
Oyedele stressed that every pension payment represents a retiree and family that has patiently waited for their rightful entitlements, adding that the government will continue to support initiatives that improve the lives of senior citizens while maintaining fiscal discipline and accountability.
He also commended PTAD for the efficient implementation of the exercise, saying the successful disbursement demonstrates the positive results that can be achieved through effective collaboration between government institutions.
PTAD Director-General, Mrs. Tolulope Odunaiya, expressed appreciation to the Minister of Finance for his support and leadership, noting that it played a key role in the timely release and disbursement of the funds.