The Federal Government has cleared N39.6 billion in longstanding pension arrears, providing relief to thousands of retirees under the Defined Benefit Scheme (DBS).
The development was disclosed during a briefing between the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, and the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, according to a statement issued on Friday by the Federal Ministry of Finance.
The ministry’s Head of Information and Public Relations, Efe Ovuakporie, said the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions.
Odunaiya said N25.05 billion was used to settle 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL).
She added that N9.48 billion represented the first 50 percent payment of Back End Computation arrears for 3,959 eligible pensioners of the Power Holding Company of Nigeria (PHCN).
According to her, another N5.09 billion was used to clear the outstanding balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.
Odunaiya said presidential approval for the payments was granted in August 2025, while funding was provided under the 2026 Appropriation Act.
She added that the payments had cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to the affected pensioners.
Edun commended PTAD for successfully implementing the exercise, describing it as evidence of the Federal Government’s commitment to responsible fiscal management.
He said the payments would restore confidence and dignity to pensioners while reaffirming the government’s resolve to meet its obligations sustainably.
The minister also reiterated the government’s commitment to reforms aimed at strengthening public financial management and improving pension administration nationwide.
Edun said the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda, which seeks to improve the welfare of pensioners and boost public confidence.
