FG Clears N39.6bn Pension Arrears

The Federal Government has cleared over N39.6 billion in outstanding pension liabilities owed to thousands of retired public servants under the Defined Benefit Scheme, bringing relief to beneficiaries across several defunct government-owned institutions.

According to The Nation, the payment was disclosed on Friday by the Federal Ministry of Finance following a briefing between the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, and the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.

The payment was also confirmed in a post by presidential aide, Dada Olsuegun, on Friday, July 3.

Dada wrote: “More than 39 billion naira in inherited pension liabilities owed to thousands of pensioners have been paid by the Federal Government under the Defined Benefit Scheme.

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“The payment covers outstanding liabilities owed to pensioners of the defunct Nigerian Telecommunications Limited, Mobile Telecommunications Limited, Power Holding Company of Nigeria, Assurance Bank, NICON and the defunct People’s Bank of Nigeria.”

According to the Ministry, the settlement marks the end of years of unpaid entitlements affecting pensioners of former federal agencies and institutions.

During the briefing, Mrs. Odunaiya said the funds released covered multiple categories of pension arrears accumulated over several years, describing the intervention as a major milestone in clearing inherited liabilities.

She disclosed that the largest component of the payment was ₦25.05 billion, used to offset 35 months of outstanding pensions owed to 9,675 retirees of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.

She further explained that ₦9.48 billion was released as the first tranche of Back End Computation (BEC) arrears owed to 3,959 retired workers of the defunct Power Holding Company of Nigeria (PHCN).

In addition, ₦5.09 billion was disbursed to complete payment of outstanding pension increase arrears for 11,180 retirees of former institutions including Assurance Bank, NICON, NITEL and the People’s Bank of Nigeria.

Mrs. Odunaiya attributed the settlement to presidential approval, noting that the intervention followed directives issued by President Bola Ahmed Tinubu in August 2025, with funding provided for in the 2026 national budget.

She said the exercise effectively concludes all outstanding pension obligations under the Defined Benefit Scheme, ending prolonged delays that had affected thousands of retirees.

“For many years, this process has carried significant arrears across multiple categories of pensioners,” she said, adding that the intervention “effectively closes the chapter on all outstanding pension liabilities inherited under the Defined Benefit Scheme.”

Receiving the briefing, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, described the payment as a demonstration of government’s commitment to its obligations to retirees.

He said, “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.”