FG announces payment of ₦39.63bn pension arrears

The Federal Government has paid a total of ₦39.63 billion to 24,814 eligible pensioners under the Defined Benefit Scheme (DBS), ending years of waiting for thousands of retirees.

The payment was announced in a statement issued on Friday by the Federal Ministry of Finance, which described the development as a major step towards addressing long-standing pension liabilities and improving the welfare of retired public servants.

According to the ministry, the Pension Transitional Arrangement Directorate (PTAD), operating under the supervision of the Federal Ministry of Finance, carried out the disbursement following a directive from the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, to prioritise the settlement of verified pension obligations.

The ministry said the payment has brought much-needed relief to beneficiaries across the country, many of whom had endured years of uncertainty while awaiting their entitlements.

It added that the exercise reflects the Federal Government’s commitment to fulfilling its obligations to pensioners and ensuring that verified pension liabilities are settled in a timely manner.

Mr Oyedele said the payment reflected the administration’s determination to ensure that retired public servants receive the benefits they earned through decades of dedicated service.

“A nation that values service must also honour those who gave their productive years in its service. This payment is about people, not just figures. It is about restoring confidence, rewarding sacrifice, and giving thousands of pensioners and their families the reassurance that they have not been forgotten,” Efe Ovuakporie, Head of Information and Public Relations at the Ministry, quoted Oyedele as saying.

The Minister explained that the disbursement covered three categories of outstanding pension obligations that had accumulated over the years.

According to him, PTAD paid ₦25,053,703,604.12 to clear the outstanding 35-month pension liability owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.

The Directorate also disbursed ₦9,481,886,576.53, representing the initial 50 per cent payment of the Back-End Computation (BEC) arrears due to 3,959 eligible PHCN Defined Benefit Scheme pensioners.

In addition, PTAD paid ₦5,094,784,054.27, representing the outstanding 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible Defined Benefit Scheme pensioners of the defunct Assurance Bank, NICON Insurance, NITEL and People’s Bank of Nigeria.

For many of the beneficiaries, the payments mark the end of years of uncertainty. They provide the means to meet pressing family needs, pay medical bills, support loved ones, and enjoy retirement with greater peace of mind.

Oyedele said the government remains mindful of the real lives behind every pension payment.

The Minister said: “Behind every approved payment is a retiree who served this country faithfully, a family that has waited patiently, and a story that deserves a positive ending.

“We will continue to support measures that improve the lives of our senior citizens while maintaining fiscal discipline and accountability.”

He commended the management and staff of PTAD for the prompt implementation of the directive, describing the successful disbursement as evidence of what can be achieved when institutions work together in the public interest.

“PTAD has demonstrated professionalism in implementing this exercise. The Ministry will continue to provide the policy direction and support required to strengthen pension administration and ensure that verified obligations are settled as resources become available,” Oyedele said.

The Director-General of PTAD, Mrs. Tolulope Odunaiya, said the Directorate remained focused on delivering efficient pension administration and expressed appreciation to the Honourable Minister for his leadership and support, which made the release and prompt disbursement of the funds possible.

The latest payment represents another important step in the Federal Government’s efforts to improve the welfare of retirees and ensure that public institutions deliver meaningful outcomes for Nigerians under the administration of President Bola Tinubu.

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