Pension Arrears Cleared
Federal Government Clears N39.6 Billion Pension Arrears, Restoring Dignity for Thousands of Retirees
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Key Points
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The payment to clear the pension increment arrears covers the balance 50% of the 10.66% and 12.95% pension increments, amounting to 5.09 billion to 11,180 retirees across Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
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The breakdown was presented during an Abuja briefing by PTAD’s Tolulope Odunaiya to the Minister of Finance, Taiwo Oyedele, with the Finance Ministry disseminating the details through its information chief, Efe Ovuakporie.
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Finance Minister Taiwo Oyedele underscored the broader significance of the payout, saying, 'For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity.'
Nigeria's Federal Government has cleared ₦39.63 billion in long-overdue pension arrears, paying out to 24,814 retirees under the Defined Benefit Scheme (DBS), according to Nigerian Eye. The payments cover workers from defunct state enterprises including NITEL, MTEL, and PHCN, as well as retirees of Assurance Bank, NICON, and People's Bank of Nigeria.
Presidential approval for the payments came in August 2025, with funding drawn from the 2026 Appropriation Act. The Pension Transitional Arrangements Directorate (PTAD) — the agency that manages pensions for retirees of former government-owned companies — led the execution of the settlement, Sundiata Post reported.
How the ₦39.6bn Was Split Across Three Groups
The total payout was divided into three clear categories, according to The Guild. The largest share — ₦25.05 billion — went to 9,675 retirees of NITEL and MTEL. These were workers of Nigeria's defunct national telecom companies who had been waiting years for their money.
The second tranche was ₦9.48 billion paid to PHCN pensioners. This covered the first 50% of what is called Back End Computation arrears — unpaid amounts owed after pension calculations were revised. A third payment of ₦5.09 billion settled remaining pension increment arrears for 11,180 retirees across Assurance Bank, NICON, NITEL, and People's Bank, DMarket Forces reported.
What Are Pension Increments and Why Did They Lag?
The ₦5.09 billion increment payment covers the remaining balance of two specific pension raises — a 10.66% increase and a 12.95% increase — that the government had previously committed to but only half-paid. These increments were announced years ago but the second 50% was never settled, leaving retirees short-changed on their monthly entitlements.
PTAD's Tolulope Odunaiya presented the full breakdown at a briefing in Abuja for Finance Minister Taiwo Oyedele. The Finance Ministry's information chief, Efe Ovuakporie, then shared the details publicly, according to Nigerian Eye.
Finance Minister: This Is About Dignity, Not Just Money
Finance Minister Taiwo Oyedele framed the payout as more than a financial transaction.
He said,
Government Frames Payout as Proof of Fiscal Responsibility
Officials tied the settlement directly to President Bola Tinubu's Renewed Hope agenda — a broad policy framework meant to restore public trust in government institutions. The payment clears what the government calls "inherited liabilities" — debts it took on from past administrations that shut down state-owned enterprises without fully settling worker benefits, The Guild reported.
The government says the move shows prudent fiscal management. Funding through the 2026 Appropriation Act signals that future pension obligations will be budgeted more formally. For the 24,814 retirees now receiving their money, the wait — stretching back in some cases more than a decade — is finally over, Sundiata Post noted.
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