FG Pays ₦39.63bn Pension Arrears to 24,814 Retirees, Clears Long-Standing DBS Liabilities
By Pan Afric Reporters
The Federal Government has disbursed ₦39.63 billion to 24,814 eligible Defined Benefit Scheme (DBS) pensioners, clearing long-standing pension liabilities and bringing relief to thousands of retirees across the country who had waited years for their entitlements.
The payment, approved under the supervision of the Federal Ministry of Finance, was implemented through the Pension Transitional Arrangement Directorate (PTAD) following a directive by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, to prioritise the settlement of verified pension obligations.
The development was disclosed in a press statement issued by the Federal Ministry of Finance and signed by the Head, Information and Public Relations Unit, Efe Ovuakporie, on Friday.
Oyedele said the disbursement demonstrates the Federal Government’s commitment to improving the welfare of pensioners and ensuring that retired public servants receive the benefits they earned through decades of dedicated service.
“A nation that values service must also honour those who gave their productive years in its service. This payment is about people, not just figures. It is about restoring confidence, rewarding sacrifice and giving thousands of pensioners and their families the reassurance that they have not been forgotten,” the Minister said.
According to the Minister, the ₦39.63 billion payment covered three categories of outstanding pension obligations accumulated over the years.
He explained that ₦25.05 billion was used to settle outstanding 35-month pension liabilities owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.
PTAD also disbursed ₦9.48 billion, representing the initial 50 per cent payment of the Back End Computation (BEC) arrears due to 3,959 eligible PHCN Defined Benefit Scheme pensioners.
In addition, the Directorate paid ₦5.09 billion, representing the outstanding 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible Defined Benefit Scheme pensioners of the defunct Assurance Bank, NICON Insurance, NITEL, and People’s Bank of Nigeria.
The Minister noted that the payments would significantly improve the lives of beneficiaries by enabling them to meet critical family obligations, pay medical bills, support dependants and enjoy retirement with greater peace of mind.
“Behind every approved payment is a retiree who served this country faithfully, a family that has waited patiently and a story that deserves a positive ending. We will continue to support measures that improve the lives of our senior citizens while maintaining fiscal discipline and accountability,” Oyedele stated.
The Minister commended the management and staff of PTAD for the prompt implementation of the directive, describing the successful exercise as evidence of what can be achieved through effective institutional collaboration.
“PTAD has demonstrated professionalism in implementing this exercise. The Ministry will continue to provide the policy direction and support required to strengthen pension administration and ensure that verified obligations are settled as resources become available,” he added.
Also speaking, the Director-General of PTAD, Mrs. Tolulope Odunaiya, reaffirmed the Directorate’s commitment to efficient pension administration and expressed appreciation to the Minister for his leadership and support, which made the release and prompt disbursement of the funds possible.
She said the Directorate remains committed to ensuring that eligible pensioners receive their entitlements promptly and efficiently.
The latest intervention marks another milestone in the Federal Government’s efforts to improve the welfare of retirees and strengthen public confidence in pension administration under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
