Federal Government Clears ₦39.6bn Pension Arrears, Ends Years of Retirees’ Wait

(Mrs Tolulope Odunaiya. Photo Credit: PTADNigeria)

The Federal Government has completed payment of over ₦39.6 billion in outstanding pension debts owed to thousands of retired public servants under the Defined Benefit Scheme, bringing to an end years of unpaid entitlements affecting pensioners from several defunct government-owned organisations.

The Federal Ministry of Finance disclosed the payment on Friday, following a briefing by the Executive Secretary of the Pension Transitional Arrangement Directorate, Mrs Tolulope Odunaiya, to the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.

During the briefing, Mrs Odunaiya explained that the released funds covered various categories of pension arrears accumulated over several years.

She said the largest portion, ₦25.05 billion, was used to settle 35 months of unpaid pensions owed to 9,675 retired employees of the defunct Nigerian Telecommunications Limited and its mobile subsidiary.

She added that a further ₦9.48 billion was disbursed as the first half of Back End Computation arrears owed to 3,959 retirees of the former Power Holding Company of Nigeria.

According to her, the government also released ₦5.09 billion to complete outstanding pension increase arrears for 11,180 eligible retirees from the former Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.

She attributed the settlement to approval granted by President Bola Ahmed Tinubu in August 2025, noting that the necessary funding was subsequently included in the 2026 national budget.

She said the payments effectively close out all outstanding pension liabilities inherited under the Defined Benefit Scheme, putting an end to years of uncertainty for retirees who had long awaited settlement of their benefits.

Responding to the briefing, Mr Oyedele described the successful completion of the payment exercise as proof of the government’s commitment to honouring its obligations to pensioners while maintaining sound management of public finances.

He said that for many pensioners, the development represents more than just the clearing of arrears, but a restoration of confidence and dignity, adding that the Ministry of Finance would continue supporting measures that strengthen public financial management while ensuring government obligations are met sustainably and on time.

The payment is expected to bring financial relief to thousands of retired workers and their families, many of whom had spent years pursuing the settlement of their outstanding pension claims.