Nigerian govt clears N39bn pension arrears for NITEL, PHCN, bank pensioners

THE Nigerian government has paid more than N39 billion in outstanding pension liabilities owed to thousands of retirees under the Defined Benefit Scheme, fulfilling a commitment to clear long-standing pension arrears inherited over the years.

The payment, announced on Friday by the Pension Transitional Arrangement Directorate (PTAD), covers pension obligations owed to retirees of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON and the defunct People’s Bank of Nigeria.

PTAD disclosed that N25.05 billion was paid to settle a 35-month pension liability for 9,675 eligible pensioners of the defunct NITEL/MTEL. Another N9.48 billion represents the first 50 percent payment 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 percent and 12.95 percent pension increment arrears for 11,180 eligible pensioners of Assurance Bank, NICON, NITEL and People’s Bank.

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The directorate described the disbursement as a significant step in the Federal Government’s efforts to improve the welfare of pensioners in line with President Bola Tinubu’s Renewed Hope Agenda.

PTAD Executive Secretary, Ms Tolulope Odunaiya, commended President Tinubu for his continued support for pension administration, saying the latest payments demonstrate the administration’s commitment to protecting the welfare and dignity of retirees under the Defined Benefit Scheme.

She said the settlement reflects the president’s focus on social protection, inclusive governance and improving the well-being of senior citizens, adding that the intervention has restored confidence in the Defined Benefit Scheme by resolving inherited pension obligations that had remained unpaid for years.

According to Odunaiya, the payments were made following presidential approval granted to PTAD in August 2025, with funding subsequently provided under the 2026 Appropriation Act.

She noted that clearing the outstanding liabilities reinforces the Federal Government’s commitment to pension reforms and ensuring that retirees receive their benefits promptly in line with the objectives of the Renewed Hope Agenda.

Odunaiya also thanked affected pensioners for their patience while the liabilities remained unresolved, assuring them that PTAD would continue to prioritise transparent, efficient and pensioner-focused service delivery.