The Federal Government has cleared all inherited pension liabilities under the Defined Benefit Scheme (DBS), disbursing ₦39.62 billion in outstanding arrears to more than 24,000 retirees.
The payment covers inherited pension obligations from defunct public enterprises and financial institutions, providing long-awaited relief to thousands of pensioners who had waited years to receive their entitlements.
Of the total amount, ₦25.05 billion was used to clear 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.
Another ₦9.48 billion was paid as the first 50 per cent instalment of Back-End Computation arrears for 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN), while the remaining ₦5.09 billion settled outstanding pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.
According to a statement issued by the ministry’s Head of Information and Public Relations, Efe Ovuakporie, on Friday, the development was disclosed during a meeting between the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya.
Odunaiya said the payments align with President Bola Tinubu’s Renewed Hope Agenda, which seeks to improve the welfare of pensioners and strengthen public confidence in government institutions.
She explained that presidential approval for the payments was granted in August 2025, while the funds were provided through the 2026 Appropriation Act.
According to her, the disbursement has now cleared all inherited pension liabilities under the Defined Benefit Scheme.
Oyedele commended PTAD for successfully implementing the payment programme, describing it as another demonstration of the government’s commitment to prudent fiscal management and the fulfilment of its obligations to retirees.
He said clearing the outstanding liabilities would restore confidence in the pension system while preserving the dignity and welfare of retired public servants.
The minister also reaffirmed the Federal Government’s commitment to reforms aimed at strengthening public financial management and improving pension administration across the country.