The Federal Government has completed the payment of more than ₦39.6 billion in outstanding pension arrears owed to thousands of retired public servants under the Defined Benefit Scheme (DBS), bringing relief to pensioners who had waited years to receive their entitlements.
The settlement covers retirees from several defunct government-owned institutions, including the former Nigerian Telecommunications Limited (NITEL), MTEL, the Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON and the People’s Bank of Nigeria.
The payment was announced on Friday after the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, briefed the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on the completion of the exercise.
NITEL and MTEL Retirees Receive Largest Share
According to PTAD, the largest portion of the payment—₦25.05 billion—was used to settle 35 months of unpaid pensions owed to 9,675 retirees of the former Nigerian Telecommunications Limited and its mobile subsidiary, MTEL.
The payment ends nearly three years of accumulated pension arrears for affected retirees.
PHCN Pensioners Receive First Tranche of Arrears
The Federal Government also released ₦9.48 billion as the first tranche of Back End Computation (BEC) arrears for 3,959 retired employees of the defunct Power Holding Company of Nigeria.
PTAD said the payment forms part of efforts to fully settle outstanding pension obligations inherited under the Defined Benefit Scheme.
Additional ₦5.09bn Paid to Other Eligible Pensioners
Another ₦5.09 billion was disbursed to complete outstanding pension increase arrears for 11,180 eligible retirees from the former:
- Assurance Bank
- NICON
- Nigerian Telecommunications Limited
- People’s Bank of Nigeria
The payments bring to a close several categories of pension liabilities that had remained unresolved for years.
Tinubu’s 2025 Approval Made Payment Possible
PTAD Executive Secretary Tolulope Odunaiya attributed the successful settlement to the approval granted by President Bola Ahmed Tinubu in August 2025.
She explained that the required funding was subsequently provided for in the 2026 national budget, enabling the government to clear the outstanding obligations.
According to her, the latest disbursement effectively closes the chapter on inherited pension liabilities under the Defined Benefit Scheme, restoring long-awaited financial security to thousands of retirees.
Finance Minister: Payment Restores Confidence and Dignity
Receiving the PTAD briefing, Finance Minister Wale Edun described the exercise as a demonstration of the government’s commitment to meeting its obligations while maintaining fiscal discipline.
He said the payment represents more than the settlement of outstanding debts.
“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity.”
Edun added that the Ministry of Finance would continue supporting reforms aimed at strengthening public financial management while ensuring government obligations are fulfilled in a sustainable and timely manner.
Relief for Thousands of Nigerian Retirees
The payment is expected to provide immediate financial relief to more than 24,000 retirees and their families, many of whom had spent years pursuing unpaid pension claims.
The settlement also marks one of the largest pension arrears payments made under the Defined Benefit Scheme in recent years, signalling renewed efforts by the Federal Government to address legacy pension liabilities.
