President Bola Tinubu has fully settled more than N39.63 billion in long-standing pension liabilities owed to retirees of the defunct NITEL/MTEL, PHCN and other federal government parastatals under the Defined Benefit Scheme, DBS.
The settlement, which was executed through the Pension Transitional Arrangement Directorate, PTAD, covers outstanding pension obligations inherited over the years and is aimed at improving the welfare of pensioners while restoring confidence in the administration of the Defined Benefit Scheme.
According to a statement by the Head of Corporate Communications at PTAD, Olugbenga Ajayi, the payments include N25.05 billion representing the outstanding 35-month pension liability owed to 9,675 eligible DBS pensioners of the defunct NITEL/MTEL; N9.48 billion as the initial 50 per cent payment of Back End Computation, BEC, arrears to 3,959 eligible PHCN DBS pensioners; and N5.09 billion as the balance of the 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.
PTAD described the payments as another significant milestone in the Federal Government’s commitment to protecting the welfare and dignity of Defined Benefit Scheme pensioners, noting that the achievement reflects President Tinubu’s focus on social protection, inclusive governance and improved welfare for senior citizens.
Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, expressed appreciation to President Tinubu for his unwavering support and leadership, which she said had strengthened the administration of the Defined Benefit Scheme and restored confidence in the pension system.
According to her, the latest disbursement has enabled the Directorate to clear all inherited pension liabilities, providing lasting relief to thousands of pensioners across the affected organisations.
Odunaiya explained that the payments followed presidential approval granted to PTAD in August 2025, while the necessary funding was provided in the 2026 Appropriation Act.
She added that the successful liquidation of the outstanding obligations demonstrates the Federal Government’s commitment to sustaining pension reforms and ensuring that pensioners receive their entitlements promptly, in line with the objectives of the Renewed Hope Agenda.
The Directorate also thanked all affected pensioners for their patience and continued confidence while the liabilities remained outstanding, reaffirming its commitment to efficient, transparent and pensioner-centred service delivery.
It pledged to continue working towards safeguarding the dignity and well-being of all Defined Benefit Scheme pensioners.
