By Anita Dennis
Thousands of retired federal workers have received long-awaited relief after the federal government cleared more than N39.6 billion in inherited pension liabilities owed to pensioners under the Defined Benefit Scheme (DBS), bringing an end to years of outstanding payments affecting retirees from the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), and other government-owned institutions.
The payment, announced by the Pension Transitional Arrangement Directorate (PTAD) in a press release signed by Olugbenga Ajayi, Head of Corporate Communications, is one of the largest settlements of legacy pension obligations in recent years. It reflects President Bola Ahmed Tinubu administration’s effort to restore confidence in the country’s pension system while addressing longstanding welfare concerns of retirees.
According to PTAD, the settlements were executed under President Tinubu’s Renewed Hope Agenda, which prioritises social protection, inclusive governance and improved welfare for senior citizens.
The Directorate disclosed that the federal government settled N25.05 billion, representing 35 months of outstanding pension liabilities owed to 9,675 eligible DBS pensioners of the defunct NITEL and MTEL.
In addition, the government paid N9.48 billion, representing the initial 50 percent of the Back End Computation (BEC) arrears due to 3,959 eligible pensioners of the defunct PHCN.
Another N5.09 billion was released to settle the outstanding 50 percent balance of the 10.66 percent and 12.95 percent pension increment arrears owed to 11,180 eligible pensioners of the defunct Assurance Bank, NICON Insurance, NITEL and the People’s Bank of Nigeria.
Altogether, the payments amount to more than N39.6 billion and benefit over 24,000 retirees who had waited years for the settlement of outstanding entitlements.
PTAD described the payments as a significant milestone in the federal government’s ongoing pension reform programme, noting that they demonstrate a sustained commitment to protecting the welfare and dignity of retirees under the DBS.
Speaking on the development, Executive Secretary of PTAD, Tolulope Odunaiya, expressed appreciation to President Tinubu for what she described as his unwavering support for pension administration and his commitment to resolving inherited pension liabilities.
She said the President’s intervention has strengthened confidence in the DBS by ensuring that long-standing obligations are finally addressed.
According to Odunaiya, the successful settlement of the outstanding liabilities became possible following presidential approval granted to the Directorate in August 2025, while the required funding was subsequently provided in the 2026 Appropriation Act.
She explained that the liquidation of the liabilities reflects the government’s determination to sustain pension reforms and ensure retirees receive their lawful entitlements without unnecessary delays.
The PTAD boss further disclosed that, under the current administration, the Directorate has successfully resolved all inherited outstanding pension liabilities under its management, providing lasting relief to thousands of pensioners who had endured prolonged delays in receiving their benefits.
For many retirees, particularly former employees of NITEL and PHCN, the payments represent more than financial support. They bring closure to years of uncertainty that followed the restructuring or privatisation of several public enterprises, during which pension obligations remained unresolved despite repeated appeals by affected pensioners.
The Directorate thanked affected pensioners for their patience throughout the period the liabilities remained outstanding, assuring them that it would continue to prioritise transparent, efficient and pensioner-focused service delivery.
