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The Federal Government has cleared more than N39.63 billion in longstanding pension liabilities owed to thousands of Defined Benefit Scheme (DBS) pensioners, fulfilling a key promise under President Bola Ahmed Tinubu's Renewed Hope Agenda.
The Pension Transitional Arrangement Directorate (PTAD) announced on Friday in a statement by its Head, Corporate Communications, Olugbenga Ajayi, that the payments covered pension 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.
According to PTAD, the Federal Government paid N25.05 billion to settle outstanding 35-month pension arrears owed to 9,675 eligible pensioners of the defunct NITEL/MTEL.
The Directorate also disbursed N9.48 billion, 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, N5.09 billion was paid as the remaining 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and the People's Bank of Nigeria.
PTAD described the payments as a major milestone in the Federal Government's commitment to clearing inherited pension liabilities and improving the welfare of retired public servants.
Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, expressed appreciation to President Tinubu for providing the leadership and support that made the payments possible.
She said the successful settlement of the inherited liabilities reflects the administration's commitment to strengthening pension administration and restoring confidence in the Defined Benefit Pension Scheme.
Odunaiya disclosed that the payments followed presidential approval granted to the Directorate in August 2025, while the necessary funding was subsequently provided in the 2026 Appropriation Act.
According to her, the liquidation of the outstanding liabilities demonstrates the Federal Government's determination to sustain pension reforms and ensure that retirees receive their entitlements promptly in line with the objectives of the Renewed Hope Agenda.
She further noted that, under the current administration, PTAD has successfully resolved all longstanding inherited pension liabilities, bringing long-awaited relief to thousands of pensioners across the affected agencies.
The Executive Secretary also commended the affected pensioners for their patience and confidence throughout the period the liabilities remained unpaid, assuring them that the Directorate would continue to prioritize efficient, transparent and pensioner-centred service delivery.
The latest settlement represents one of the largest single interventions in clearing outstanding Defined Benefit Scheme pension obligations and is expected to provide significant financial relief to thousands of retired federal workers across the country.
If intended for online publication, a suitable headline is: "FG Pays N39.6bn Pension Arrears to NITEL, PHCN, Other DBS Pensioners."