FG clears N39.6bn pension arrears for 24,000+ retirees under Defined Benefit Scheme
The federal government has cleared N39.6 billion in outstanding pension arrears, settling longstanding liabilities for over 24,000 retirees under the Defined Benefit Scheme. The payment, announced Friday, covers pension obligations inherited from defunct public enterprises and financial institutions including NITEL, MTEL, PHCN, Assurance Bank, NICON and People's Bank.
The breakdown shows N25.05 billion settled 35 months of pension arrears for 9,675 eligible pensioners of defunct NITEL and its mobile subsidiary MTEL. Another N9.48 billion was paid as the first 50 percent installment of Back-End Computation arrears due to 3,959 pensioners of the defunct Power Holding Company of Nigeria (PHCN). Additionally, N5.09 billion cleared pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People's Bank.
Minister of Finance Taiwo Oyedele and PTAD Executive Secretary Tolulope Odunaiya confirmed presidential approval for the payments was granted in August 2025, with funding provided through the 2026 Appropriation Act. Odunaiya stated the exercise has cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to affected pensioners. Oyedele noted the settlement restores confidence in the pension system and preserves retirees' dignity, aligning with President Bola Tinubu's Renewed Hope Agenda.
With this long-standing pension debt finally cleared, what specific reforms should the government prioritize next to prevent future arrears and ensure sustainable pension payments for current and future retirees?