The Federal Government has paid over ₦39.6 billion in outstanding pension arrears to thousands of retirees under the Defined Benefit Scheme, ending years of delayed payments.
FG Pays ₦39.6 Billion Pension Arrears, Bringing Relief to Thousands of Nigerian Retirees
The Federal Government has completed the payment of more than ₦39.6 billion in outstanding pension arrears owed to retired public servants under the Defined Benefit Scheme (DBS), providing long-awaited financial relief to thousands of pensioners across Nigeria.
The payment settles pension liabilities that had remained unresolved for years, particularly for retirees of several former government-owned organisations.
Pension Arrears Finally Cleared
The Federal Ministry of Finance announced the completion of the payment following 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.
According to PTAD, the funds were used to clear multiple categories of outstanding pension obligations that had accumulated over several years.
Breakdown of the ₦39.6 Billion Payment
The released funds were allocated as follows:
- ₦25.05 billion was paid to settle 35 months of unpaid pensions owed to 9,675 retirees of the defunct Nigerian Telecommunications Limited (NITEL) and its former mobile subsidiary.
- ₦9.48 billion was disbursed as the first tranche of Back End Computation (BEC) arrears for 3,959 retirees of the former Power Holding Company of Nigeria (PHCN).
- ₦5.09 billion was used to settle outstanding pension increase arrears for 11,180 eligible retirees from former public institutions, including Assurance Bank, NICON, NITEL, and People’s Bank of Nigeria.
Approval and Budget Provision
PTAD explained that the payment followed approval granted by President Bola Ahmed Tinubu in August 2025, with funding subsequently provided in the 2026 Federal Budget.
The agency noted that the latest disbursement effectively clears the remaining pension liabilities inherited under the Defined Benefit Scheme, ending years of uncertainty for many retirees.
Government Reaffirms Commitment to Pensioners
Speaking after the briefing, Finance Minister Taiwo Oyedele said the successful payment demonstrates the government’s commitment to meeting its obligations to retired workers while maintaining responsible public financial management.
He noted that the settlement goes beyond clearing outstanding debts, describing it as a step toward restoring confidence and dignity for pensioners who had waited years to receive their benefits.
The minister added that the Ministry of Finance will continue to support reforms that promote efficient public finance management while ensuring pension obligations are fulfilled promptly and sustainably.
What the Payment Means for Retirees
The settlement is expected to ease the financial burden on thousands of retired workers and their families, many of whom had spent years seeking payment of their outstanding entitlements.
For affected pensioners, the disbursement represents not only financial relief but also the resolution of long-standing claims that had remained unpaid for years.
Frequently Asked Questions
Who received the ₦39.6 billion pension payment?
The payment covers eligible retirees under the Defined Benefit Scheme, including former employees of NITEL, PHCN, Assurance Bank, NICON, and People’s Bank of Nigeria.
What is the Defined Benefit Scheme?
The Defined Benefit Scheme is a pension arrangement that guarantees eligible retirees a fixed retirement benefit based on government regulations and years of service.
Why were the pension arrears delayed?
The arrears accumulated over several years due to outstanding pension liabilities inherited under the Defined Benefit Scheme.
Has the government cleared all outstanding DBS pension liabilities?
According to PTAD, the latest payment settles the remaining outstanding liabilities covered under this approval.
How much was paid to NITEL retirees?
About ₦25.05 billion was paid to settle 35 months of unpaid pensions for 9,675 former NITEL employees.