The Federal Government has settled over N39 billion in inherited pension liabilities owed to thousands of retirees under the Defined Benefit Scheme, fulfilling President Bola Tinubu’s commitment to clearing longstanding pension debts owed to workers of defunct government-owned enterprises and financial institutions.

The Pension Transitional Arrangement Directorate disclosed on Friday that the payment covers outstanding liabilities owed to pensioners of the defunct Nigerian Telecommunications Limited, its mobile subsidiary MTEL, the Power Holding Company of Nigeria, Assurance Bank, NICON, and the defunct People’s Bank of Nigeria. According to PTAD, the largest chunk of the disbursement, N25.05 billion, was used to settle 35 months of outstanding pension arrears owed to 9,675 eligible pensioners of the former NITEL and MTEL.

A further N9.48 billion covered the first 50 per cent instalment of Back End Computation arrears due to 3,959 eligible PHCN pensioners, while N5.09 billion was used to clear the outstanding balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank of Nigeria. PTAD Executive Secretary, Tolulope Odunaiya, explained that the payments followed presidential approval granted in August 2025, with the required funding subsequently provided under the 2026 Appropriation Act.

Odunaiya described the settlement as a major milestone under the Renewed Hope Agenda, noting that it has restored confidence in the Defined Benefit Scheme by resolving pension obligations that had remained unpaid for years. She said the exercise marks the completion of all inherited pension liabilities under the scheme, bringing long-awaited relief to thousands of pensioners who had endured years of delayed payments. Odunaiya also thanked the affected pensioners for their patience, assuring them that PTAD would continue to prioritise transparent and pensioner-focused service delivery going forward.

The latest settlement forms part of a broader series of measures by the Federal Government aimed at addressing inherited pension obligations and strengthening confidence in Nigeria’s pension administration system.

Photo Credit: Nigerian eye