Oyedele: FG Has Fully Cleared PHCN Pension Arrears
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).
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this in a statement, noting that the latest payment of ₦9,476,313,375.74 represented the outstanding 50 per cent balance of the arrears.
According to the statement, the Pension Transitional Arrangement Directorate (PTAD) paid the latest tranche to 3,958 eligible PHCN DBS pensioners.
The first tranche, amounting to ₦9,481,886,576.53, was paid in June 2026 to 3,959 eligible pensioners.
With the payment of the second tranche, the total amount disbursed under the exercise has reached ₦18,958,199,952.27, effectively settling the BEC arrears due to all eligible PHCN DBS pensioners covered by the exercise.
PTAD explained that the difference of ₦5,573,200.79 between the two tranches resulted from the death of one pensioner after the first payment and before the processing of the second tranche.
Oyedele said the completion of the payment demonstrated the Federal Government’s commitment to addressing inherited pension liabilities and ensuring that verified entitlements owed to pensioners are settled.
He added that pension obligations remained an important responsibility of government to citizens who served the country, noting that the settlement of verified liabilities would continue to receive attention within 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.
The Ministry said the full settlement of the arrears brings the outstanding BEC liability covered by the exercise to an end and is expected to provide relief to affected pensioners and their families.
The Federal Ministry of Finance also commended PTAD, under the leadership of its Executive Secretary, Tolu Odunaya, for its coordination of the payment exercise.
The government said it would continue to work through relevant agencies to address outstanding pension liabilities and strengthen the administration of pension entitlements under the Defined Benefit Scheme.
