The Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, has briefed the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, on the payment of over N39.6 billion pension arrears owed retirees under the Defined Benefit Scheme (DBS).
Odunaiya told the minister that the payments comprised N25.05 billion representing the outstanding 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL; N9.48 billion representing the initial 50 per cent payment of the Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners; and N5.09 billion representing the balance 50 per cent payment of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
She explained that the payment of the outstanding arrears to the retirees followed the Presidential approval in August 2025, with the required funding subsequently provided under the 2026 Appropriation Act.
According to her, the exercise has now brought to a close all inherited pension liabilities under the DBS, providing long-awaited relief to thousands of pensioners.
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Commending the PTAD on the payment of the outstanding arrears to the pensioners, Oyedele said the settlement demonstrated the government’s resolve to address long-standing obligations through prudent fiscal management and responsible governance.
The minister clarified: “For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity. The Ministry of Finance will continue to support measures that strengthen public financial management while ensuring that government obligations are met in a sustainable and timely manner.”
Analysts believe that the payment of the arrears to the retirees showed the present administration’s commitment to meeting long-standing obligations, strengthening public confidence and improving the welfare of pensioners.
