Federal Government Pays Over ₦39 Billion in Pension Arrears to Thousands of Nigerian Retirees

Federal Government Pays Over ₦39 Billion in Pension Arrears to Thousands of Nigerian Retirees

Description: Federal Government pays over ₦39 billion in pension arrears to thousands of retirees under the Defined Benefit Scheme, fulfilling President Tinubu's promise to clear inherited pension debts.

The Federal Government has paid more than ₦39 billion in long-overdue pension arrears to thousands of retirees under the Defined Benefit Scheme, fulfilling President Bola Ahmed Tinubu's pledge to clear inherited pension liabilities and improve the welfare of pensioners across Nigeria.

The payment, announced by the Pension Transitional Arrangement Directorate (PTAD), covers outstanding pension obligations owed to retirees from several defunct government agencies and financial institutions.

Breakdown of the ₦39 Billion Pension Payment

According to PTAD, the disbursement includes:

- ₦25.05 billion to settle 35 months of unpaid pension liabilities for 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL).

- ₦9.48 billion representing the first 50% payment of Back End Computation (BEC) arrears for 3,959 eligible retirees of the Power Holding Company of Nigeria (PHCN).

- ₦5.09 billion to clear the outstanding balance of 10.66% and 12.95% pension increment arrears owed to 11,180 eligible pensioners from Assurance Bank, NICON, NITEL, and the defunct People's Bank of Nigeria.

The payment is expected to bring financial relief to thousands of pensioners who have waited years for the settlement of their outstanding benefits.

PTAD Hails Tinubu's Commitment to Pensioners

PTAD described the payment as a landmark achievement under President Tinubu's Renewed Hope Agenda, noting that it reflects the administration's commitment to protecting the welfare and dignity of retired public servants.

PTAD Executive Secretary, Tolulope Odunaiya, commended the President for prioritising pension reforms and supporting efforts to eliminate inherited pension liabilities.

According to her, the intervention demonstrates the Federal Government's dedication to strengthening social protection, promoting inclusive governance, and restoring confidence in Nigeria's Defined Benefit Scheme.

She added that thousands of retirees who had endured years of delayed payments can now look forward to improved financial stability and a better quality of life.

Major Relief for Thousands of Pensioners

The latest payment represents one of the largest pension settlements under the current administration and is expected to ease the financial burden on thousands of elderly Nigerians.

For many beneficiaries, the settlement ends years of uncertainty over unpaid pension arrears and reinforces the government's commitment to honouring obligations to retired workers who dedicated decades of service to the nation.

Why This Matters

The payment of more than ₦39 billion in pension arrears is a significant milestone in Nigeria's pension administration reforms. It not only restores confidence in the Defined Benefit Scheme but also demonstrates the Federal Government's resolve to clear inherited pension debts and improve the welfare of retirees.

As pension reforms continue, many Nigerians will be watching closely to see whether the government sustains the timely payment of pensions and addresses other outstanding liabilities affecting retired public servants.

Conclusion

The Federal Government's decision to clear over ₦39 billion in outstanding pension liabilities marks a major victory for thousands of Nigerian retirees. The move provides long-awaited financial relief, strengthens confidence in the pension system, and reinforces the administration's commitment to fulfilling its promises under the Renewed Hope Agenda.

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 Federal Government pays ₦39 billion pension arrears

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