FG Clears ₦18.96bn PHCN Pension Arrears, Settles 3,958 Beneficiaries — Oyedele
By Pan Afric Reporters
The Federal Government has completed the payment of ₦18.96 billion in Back-End Computation (BEC) arrears owed to eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN) under the Defined Benefit Scheme (DBS), bringing the liability covered by the exercise to a close.
The development was contained in a statement issued by Efe Ovuakporie, Head, Information and Public Relations Unit, Federal Ministry of Finance, on Friday, September 18, 2026, quoting the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on the completion of the payment.
Oyedele disclosed that the latest payment of ₦9,476,313,375.74, representing the outstanding 50 per cent balance of the BEC arrears, was paid by the Pension Transitional Arrangement Directorate (PTAD) to 3,958 eligible PHCN DBS pensioners.
The first tranche, also representing 50 per cent of the arrears, amounted to ₦9,481,886,576.53 and was paid in June 2026 to 3,959 eligible pensioners.
With the release of the second tranche, PTAD has now fully settled the verified BEC arrears due to all eligible PHCN DBS pensioners covered by the exercise, bringing the total amount disbursed to ₦18,958,199,952.27.
PTAD explained that the difference of ₦5,573,200.79 between the two payments resulted from the death of one pensioner after the first tranche had been paid and before the processing of the second payment.
Commenting on the development, Oyedele said the completion of the exercise demonstrated the Federal Government’s determination to address inherited pension liabilities and ensure that verified entitlements due to pensioners are settled.
“The completion of the payment demonstrated the Federal Government’s determination to address inherited pension liabilities and ensure that verified entitlements due to pensioners are settled,” the Minister said.
Oyedele stressed that pension obligations remained an important responsibility of government to citizens who had served the country, adding that the settlement of verified liabilities would continue to receive appropriate attention within the framework of available resources and approved processes.
The PHCN BEC arrears arose from the computation of additional pension entitlements due to eligible pensioners under the Defined Benefit Scheme. Their full settlement therefore brings the outstanding BEC liability covered by the exercise to an end.
The Ministry said the completion of the payment was expected to provide relief to affected pensioners and their families, many of whom had awaited the resolution of the outstanding entitlements.
The Federal Ministry of Finance commended PTAD, under the leadership of its Executive Secretary, Tolu Odunaya, for what it described as diligence and effective coordination of the exercise, which culminated in the full settlement of the verified BEC arrears.
The government, the Ministry said, would continue to work through relevant agencies to address outstanding pension liabilities and strengthen the administration of pension entitlements under the Defined Benefit Scheme.
