BY COBHAM NSA – Thousands of retirees across Nigeria are embracing subdued celebration following news that the Federal Government has cleared a staggering N39.6 billion in outstanding pension liabilities.
This massive financial injection and decisive payout, being executed under the President’s ‘Renewed Hope’ agenda, is seen as bringing the long-awaited relief to countless senior citizens nationwide, while successfully erasing years of structural backlog and restoring economic dignity to vulnerable retirees nationwide.
Official confirmation of the heartwarming development has come from the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, who described it as marking a major turning point in national welfare administration, and proving the administration’s concrete commitment to honoring the lifelong service of its senior workforce.
The development came to light when the Minister hosted the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, who briefed him on the successful settlement of more than ₦39.6 billion in longstanding pension liabilities under the Defined Benefit Scheme (DBS).
Appreciating PTAD for handling the exercise successfully, the Minister said the settlement demonstrates the Federal Government’s resolve to address longstanding obligations through prudent fiscal management and responsible governance.
He said: “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.”
Making her presentation earlier, Mrs Odunaiya told 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; and ₦9.48 billion, representing the initial 50 per cent payment of the Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners.
She said also covered by the amount is ₦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.
Odunaiya 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.
A statement by Efe Ovuakporie, Head, Information and Public Relations of the Finance Ministry, on the latest development, said the pension clearance 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.
