FG Pays N39bn Pension Arrears to Retirees Across Defunct Public Agencies

Thousands of pensioners under the Federal Government’s Defined Benefit Scheme have begun receiving long-overdue payments after the release of more than N39 billion to clear outstanding liabilities.

The Pension Transitional Arrangement Directorate (PTAD), which announced the development on Friday, said the disbursement covers retirees from the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON and the former People’s Bank of Nigeria.

The largest share of the payment, amounting to N25.05 billion, went to 9,675 former NITEL and MTEL employees, settling pension obligations that had accumulated over a 35-month period.

Another N9.48 billion was released as the first tranche of Back End Computation arrears for 3,959 eligible PHCN retirees, while N5.09 billion cleared the remaining balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 pensioners from Assurance Bank, NICON, NITEL and the defunct People’s Bank.

PTAD linked the payment to the Tinubu administration’s commitment to reducing inherited pension liabilities, noting that the exercise forms part of ongoing efforts to improve the welfare of retired public servants under the Renewed Hope Agenda.

PTAD Executive Secretary, Tolulope Odunaiya, acknowledged the President’s backing for pension reforms, saying the intervention has made it possible to address obligations that had remained unsettled for years.

She said the latest disbursement marks “another milestone in improving the welfare of pensioners and settling outstanding pension liabilities.”