The Federal Government announced on Friday, July 3, 2026, that it has cleared N39.6 billion in outstanding pension arrears, settling long-standing liabilities owed to more than 24,000 retirees under the Defined Benefit Scheme (DBS).
This payment covers pension obligations inherited from defunct public enterprises and financial institutions, providing significant relief to thousands of pensioners who had waited years for their entitlements.
The development was disclosed during a meeting between the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya. A statement from the ministry’s Head of Information and Public Relations, Efe Ovuakporie, confirmed the details.
Mrs. Odunaiya specified that N25.05 billion was used to settle 35 months of pension arrears for 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.
Additionally, N9.48 billion was paid as the first 50 percent instalment of Back-End Computation arrears due to 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN).
Another N5.09 billion cleared the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL, and People’s Bank.
Mrs. Odunaiya explained that presidential approval for these payments was granted in August 2025, with funding provided through the 2026 Appropriation Act. She confirmed that this exercise has now cleared all inherited pension liabilities under the Defined Benefit Scheme.
Minister Oyedele commended PTAD for successfully implementing the payment programme, describing it as a demonstration of the government’s commitment to prudent fiscal management and fulfilling its obligations to retirees.
He added that settling these outstanding liabilities restores confidence in the pension system and helps preserve the dignity of retired public servants. The minister also reaffirmed the government’s commitment to reforms aimed at strengthening public financial management and improving pension administration across the country.
Mr. Oyedele noted that the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda, which seeks to improve the welfare of pensioners while promoting greater confidence in public institutions.
