Tinubu Govt Clears ₦39.6bn Pension Arrears, Ends Years of Delayed Payments

The Federal Government has announced the payment of ₦39.6 billion in long-standing pension arrears, bringing relief to thousands of retirees under the Defined Benefit Scheme (DBS).

The payment, which settles inherited pension liabilities accumulated over several years, covers eligible retirees of defunct public enterprises and financial institutions, according to the Pension Transitional Arrangement Directorate (PTAD).

The development was disclosed on Friday in a statement issued by the Head of Information and Public Relations at the Federal Ministry of Finance, Mr. Efe Ovuakporie, following a meeting between the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, and the Executive Secretary of PTAD, Ms. Tolulope Odunaiya.

Briefing the minister, Odunaiya said the intervention was made possible following presidential approval granted in August 2025, with funding provided through the 2026 Appropriation Act.

She explained that ₦25.05 billion was used to settle 35 months of pension arrears owed to 9,675 eligible retirees of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.

According to her, another ₦9.48 billion represents the first 50 per cent payment of arrears arising from the backend pension computation for 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN).

Odunaiya added that the remaining ₦5.09 billion was used to clear outstanding pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON Insurance, NITEL and People's Bank.

She said the payments effectively cleared all inherited pension liabilities under the Defined Benefit Scheme, describing the development as a major milestone in addressing long-standing obligations to retired public servants.

The PTAD boss noted that the intervention would provide long-awaited financial relief to affected pensioners, many of whom had endured years of uncertainty over unpaid entitlements.

Responding, Finance Minister Taiwo Oyeedele commended PTAD for successfully implementing the exercise, describing it as a demonstration of the Federal Government's commitment to prudent fiscal management and responsible governance.

Oyedele said the settlement of the outstanding liabilities would help restore confidence in the pension system while reaffirming the government's determination to honour its obligations to retirees in a sustainable manner.

He also pledged continued support for reforms aimed at strengthening public financial management and improving pension administration across the country.

According to the minister, the payment aligns with President Bola Tinubu's Renewed Hope Agenda, which seeks to improve the welfare of pensioners while reinforcing public confidence in government institutions.