By Oluwakemi Kindness
The Federal Government says it has cleared ₦39.6 billion in long-standing pension arrears under the Defined Benefit Scheme (DBS), bringing inherited pension liabilities to an end and providing relief to more than 24,000 retirees.
According to a statement issued on Friday by the Federal Ministry of Finance and PTAD, the payments cover ₦25.05 billion owed to 9,675 pensioners of the defunct NITEL/MTEL, ₦9.48 billion as the first 50 per cent payment of Back End Computation arrears for 3,959 PHCN pensioners.
The payments also cover ₦5.09 billion as the balance of pension increment arrears for 11,180 retirees from the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
The update was presented to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, by the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, during a briefing on the completion of the payment exercise.
Odunaiya said the settlement followed presidential approval granted in August 2025, with funding provided through the 2026 Appropriation Act. She added that the payments have now cleared all inherited pension liabilities under the Defined Benefit Scheme, ending years of outstanding obligations.
Reacting to the development, Oyedele said the payments reflect the Federal Government’s commitment to responsible fiscal management and meeting long-standing obligations.
He said the settlement restores confidence and dignity to affected pensioners while reinforcing efforts to strengthen public financial management under the Renewed Hope Agenda.
