FG Clears Over N39b Inherited Pension Arrears for NITEL, PHCN, Other DBS Retirees

The Federal Government has cleared more than N39 billion in long-standing pension liabilities owed to retirees under the Defined Benefit Scheme (DBS), bringing relief to thousands of former employees of the defunct NITEL/MTEL, PHCN and other federal government parastatals.

The Pension Transitional Arrangement Directorate (PTAD) announced on Friday that the payments were made in line with President Bola Tinubu’s Renewed Hope Agenda and his administration’s commitment to eliminating inherited pension obligations.

According to a statement signed on Friday by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, the settlements cover outstanding pension arrears owed to eligible retirees across several government agencies.

The largest payment, amounting to N25.05 billion, was used to clear a 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL.

PTAD also disbursed N9.48 billion, representing the initial 50 per cent payment of Back End Computation (BEC) arrears due to 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN).

In addition, the Directorate paid N5.09 billion, being the remaining 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.

The Directorate described the payments as a major milestone in the Federal Government’s efforts to improve the welfare of pensioners and honour long-standing obligations under the Defined Benefit Scheme.

It stated that the settlements reflected President Tinubu’s commitment to social protection, inclusive governance and the welfare of senior citizens.

PTAD Executive Secretary, Tolulope Odunaiya, said the clearance of the inherited liabilities marked a significant achievement in strengthening confidence in the administration of the Defined Benefit Scheme.

She expressed appreciation to President Tinubu for providing the leadership and support that made the payments possible.

According to her, “under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of DBS pensioners.”

Odunaiya disclosed that the payments followed presidential approval granted to PTAD in August 2025, while the necessary funds were provided under the 2026 Appropriation Act.

She said the successful liquidation of the liabilities underscored the Federal Government’s determination to sustain pension reforms and ensure retirees received their entitlements promptly.

The Executive Secretary also thanked affected pensioners for their patience while the outstanding liabilities remained unresolved.

PTAD reaffirmed its commitment to maintaining transparent, efficient and pensioner-centred service delivery, saying it would continue to support the Federal Government’s objective of protecting the dignity and well-being of retirees under the Defined Benefit Scheme.