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 announced in a statement issued by Efe Ovuakporie, Head, Information and Public Relations, Federal Ministry of Finance, on Friday in Abuja.
Mr Ovuakporie stated that this was disclosed when the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, received the Executive Secretary of Pension Transitional Arrangement Directorate, PTAD, Tolulope Odunaiya, on a briefing.
According to Mrs Odunaiya, the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions.
She further said that N25.05 billion was for the settlement of 35-month pension arrears owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.
According to PTAD boss, N9.48 billion represents the first 50 per cent payment of Back End Computation arrears for 3,959 eligible PHCN pensioners.
Mrs Odunaiya added that N5.09 billion cleared the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.
She said that presidential approval was granted in August 2025, while funding was provided under the 2026 Appropriation Act.
Mrs Odunaiya said that the payments had cleared all inherited pension liabilities under the DBS, bringing long-awaited relief to affected pensioners.
Oyedele commended PTAD for successfully executing the exercise, describing it as evidence of government’s commitment to responsible fiscal management.
The minister said the payments restored confidence and dignity to pensioners while reaffirming government’s resolve to honour its obligations sustainably.
He reiterated continued support for reforms that strengthen public financial management and improve pension administration nationwide.
Oyedele said that the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda aimed at improving pensioners’ welfare and boosting public confidence.