FG Clears N39.6bn Pension Arrears for Former NITEL, PHCN, Bank Workers

FG Clears N39.6bn Pension Arrears for Former NITEL, PHCN, Bank Workers

The Federal Government has paid more than N39.6 billion in outstanding pension liabilities to thousands of retirees under the Defined Benefit Scheme (DBS), ending years of unpaid arrears owed to former employees of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON, and the People’s Bank of Nigeria.

The Pension Transitional Arrangement Directorate (PTAD) announced the payment on Friday, describing it as a major milestone in the Federal Government’s efforts to clear inherited pension liabilities and improve the welfare of retired public servants.

According to PTAD, the disbursement fulfils President Bola Ahmed Tinubu’s commitment under the Renewed Hope Agenda to resolve longstanding pension obligations that had remained unpaid for several years.

A breakdown of the payments shows that N25.05 billion was released to settle 35 months of pension arrears owed to 9,675 eligible retirees of the defunct NITEL and MTEL.

The Federal Government also paid N9.48 billion, representing the first 50 per cent of the Back End Computation (BEC) arrears due to 3,959 eligible PHCN pensioners.

In addition, N5.09 billion was disbursed as the outstanding balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners from Assurance Bank, NICON, NITEL, and the People’s Bank of Nigeria.

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In total, the latest payment benefits more than 24,800 retirees, many of whom had waited years for the settlement of their outstanding entitlements.

PTAD said the payment represents another significant step towards restoring confidence in Nigeria’s pension administration system, particularly for pensioners under the Defined Benefit Scheme, which predates the country’s contributory pension system.

Speaking on the development, the Executive Secretary of PTAD, Tolulope Odunaiya, praised President Tinubu for approving the release of funds to offset the inherited liabilities.

She described the payment as evidence of the administration’s commitment to protecting the welfare and dignity of retired public servants.

“These landmark achievements mark yet another significant milestone in the Federal Government’s unwavering commitment to safeguarding the welfare and dignity of Defined Benefit Scheme pensioners. It is a clear demonstration of the visionary leadership of President Bola Ahmed Tinubu, whose Renewed Hope Agenda places priority on social protection, inclusive governance and the well-being of senior citizens,” she said.

Odunaiya noted that the settlement had resolved some of the oldest outstanding pension liabilities inherited by the current administration.

“Under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of Defined Benefit Scheme pensioners.”

She explained that the payment followed presidential approval granted in August 2025, while the required funds were subsequently provided in the 2026 Appropriation Act.

According to her, clearing the arrears underscores the Federal Government’s commitment to sustaining pension reforms and ensuring retirees receive their entitlements without unnecessary delays.

“The successful liquidation of these liabilities underscores the Federal Government’s resolve to sustain pension reforms and ensure that Defined Benefit Scheme pensioners receive their rightful entitlements in a timely manner, consistent with the objectives of the Renewed Hope Agenda.”

Odunaiya also thanked the affected retirees for their patience throughout the period the liabilities remained unpaid.

She reaffirmed PTAD’s commitment to transparent, efficient and pensioner-focused service delivery while assuring beneficiaries that the agency would continue working to improve pension administration.

The Defined Benefit Scheme covers federal retirees who left public service before the introduction of the Contributory Pension Scheme (CPS) under the Pension Reform Act 2004. Established in 2013, PTAD is responsible for administering pensions under the old scheme and settling outstanding obligations inherited from defunct government agencies and privatised public enterprises.

For years, pensioners’ associations have repeatedly appealed to the Federal Government to clear accumulated arrears and implement approved pension increases, arguing that inflation and the rising cost of living had significantly eroded retirees’ purchasing power.

Labour and pension advocacy groups have welcomed the latest payment as a positive step towards rebuilding confidence in the country’s pension system. However, they urged the government to ensure that future pension payments, arrears and approved increments are settled promptly to prevent another backlog.

Analysts also believe the clearance of the inherited liabilities will strengthen confidence in Nigeria’s pension reforms, improve retirees’ welfare and demonstrate the government’s commitment to honouring its obligations to former public servants.

The latest disbursement forms part of broader efforts by the Federal Government to modernise pension administration, eliminate legacy debts and ensure timely payment of benefits to retirees across the country.

FG Clears N39.6bn Pension Arrears for Former NITEL, PHCN, Bank Workers