FG Clears N39.6bn Pension Arrears Under Renewed Hope
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has received the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, on a briefing over the successful settlement of more than ₦39.6 billion in longstanding pension liabilities under the Defined Benefit Scheme (DBS).
The briefing highlighted another milestone in the implementation of President Bola Ahmed Tinubu’s Renewed Hope Agenda, following the Federal Government’s clearance of inherited pension obligations that had remained outstanding for years.
Mrs. Odunaiya informed the Minister that the payments comprise ₦25.05 billion representing the outstanding 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL; ₦9.48 billion representing the initial 50 per cent payment of the Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners; and ₦5.09 billion representing the balance 50 per cent payment of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
She explained that the settlement followed Presidential approval granted in August 2025, with the required funding subsequently provided under the 2026 Appropriation Act. According to her, the exercise has now brought to a close all inherited pension liabilities under the Defined Benefit Scheme, providing long-awaited relief to thousands of pensioners.
Commending PTAD for the successful execution of the exercise, the Honourable Minister said the settlement demonstrates the Federal Government’s resolve to address longstanding obligations through prudent fiscal management and responsible governance.
“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity. The Ministry of Finance will continue to support measures that strengthen public financial management while ensuring that government obligations are met in a sustainable and timely manner,” Mr. Oyedele said.
The development marks another milestone in the implementation of the Renewed Hope Agenda, reflecting the Federal Government’s focus on meeting longstanding obligations, strengthening public confidence and improving the welfare of pensioners.
