Relief for retirees as FG clears N39.6bn pension arrears

The Federal Government has cleared N39.6 billion in longstanding pension arrears, providing relief to thousands of retirees under the Defined Benefit Scheme (DBS).

The Head of Information and Public Relations, Federal Ministry of Finance, Efe Ovuakporie, made this known in a statement issued on Friday, July 3, 2026.

Ovuakporie stated that the payment was announced when the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, received the Executive Secretary of Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, on a briefing.

Odunaiya said the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions.

Odunaiya stated that N25.05 billion was for the settlement of 35-month pension arrears owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.

The PTAD boss disclosed that N9.48 billion represents the first 50 per cent payment of Back End Computation arrears for 3,959 eligible PHCN pensioners.

Odunaiya added that N5.09 billion cleared the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.

She said presidential approval was granted in August 2025, while funding was provided under the 2026 Appropriation Act.

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Odunaiya said the payments had cleared all inherited pension liabilities under the DBS, bringing long-awaited relief to affected pensioners.

Oyedele commended PTAD for executing the exercise, describing it as evidence of government’s commitment to responsible fiscal management.

The minister said the payments restored confidence and dignity to pensioners while reaffirming government’s resolve to honour its obligations sustainably.

Oyedele reiterated continued support for reforms that strengthen public financial management and improve pension administration nationwide.

Oyedele said the exercise aligns with President Bola Tinubu’s Renewed Hope Agenda aimed at improving pensioners’ welfare and boosting public confidence.