FG pays ₦39bn pension arrears for NITEL, PHCN and defunct bank workers

‘Years of Waiting Over’ — FG Clears ₦39.63bn Pension Liabilities, Pays 24,814 Retirees

 The Federal Government has paid ₦39.63 billion to 24,814 eligible Defined Benefit Scheme (DBS) pensioners, even as the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, reaffirms his commitment to improving the welfare of Nigerian pensioners.   The Federal Ministry of Finance, in a statement Friday, said the payments have ended many years of anxious waiting for thousands of retirees.   Working under the supervision of the Federal Ministry of Finance, the Pension Transitional Arrangement Directorate (PTAD) carried out the payments following the Minister’s directive to prioritise the settlement of verified pension liabilities, bringing relief to beneficiaries across the country.   Mr Oyedele said the payment reflected the administration’s determination to ensure that retired public servants receive the benefits they earned through decades of dedicated service.   “A nation that values service must also honour those who gave their productive years in its service. This payment is about people, not just figures. It is about restoring confidence, rewarding sacrifice, and giving thousands of pensioners and their families the reassurance that they have not been forgotten,” Efe Ovuakporie, Head of Information and Public Relations at the Ministry, quoted Oyedele as saying.   The Minister explained that the disbursement covered three categories of outstanding pension obligations that had accumulated over the years. According to him, PTAD paid ₦25,053,703,604.12 to clear the outstanding 35-month pension liability owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.   The Directorate also disbursed ₦9,481,886,576.53, representing the initial 50 per cent payment of the Back-End Computation (BEC) arrears due to 3,959 eligible PHCN Defined Benefit Scheme pensioners.   In addition, PTAD paid ₦5,094,784,054.27, representing the outstanding 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible Defined Benefit Scheme pensioners of the defunct Assurance Bank, NICON Insurance, NITEL and People’s Bank of Nigeria.   For many of the beneficiaries, the payments mark the end of years of uncertainty. They provide the means to meet pressing family needs, pay medical bills, support loved ones, and enjoy retirement with greater peace of mind.   Oyedele said the government remains mindful of the real lives behind every pension payment.   The Minister said: “Behind every approved payment is a retiree who served this country faithfully, a family that has waited patiently, and a story that deserves a positive ending. “We will continue to support measures that improve the lives of our senior citizens while maintaining fiscal discipline and accountability.”   He commended the management and staff of PTAD for the prompt implementation of the directive, describing the successful disbursement as evidence of what can be achieved when institutions work together in the public interest.   “PTAD has demonstrated professionalism in implementing this exercise. The Ministry will continue to provide the policy direction and support required to strengthen pension administration and ensure that verified obligations are settled as resources become available,” Oyedele said.   The Director-General of PTAD, Mrs. Tolulope Odunaiya, said the Directorate remained focused on delivering efficient pension administration and expressed appreciation to the Honourable Minister for his leadership and support, which made the release and prompt disbursement of the funds possible.   The latest payment represents another important step in the Federal Government’s efforts to improve the welfare of retirees and ensure that public institutions deliver meaningful outcomes for Nigerians under the administration of President Bola Tinubu. 

9 hours ago

FG Settles NITEL, PHCN, Bank Workers' N39bn Pension Liabilities

The Federal Government has paid over N39 billion in long-outstanding pension liabilities to thousands of retirees under the Defined Benefit Scheme (DBS), fulfilling President Bola Tinubu’s pledge to clear inherited pension debts. The Pension Transitional Arrangement Directorate (PTAD) announced the payments on Friday. They cover retirees from the defunct Nigerian Telecommunications Limited (NITEL) and its Mobile Telecommunications Limited (MTEL) arm, the Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON, and the defunct People’s Bank of Nigeria. Breakdown of the payments includes:  N25.05 billion — 35 months of pension arrears for 9,675 eligible NITEL/MTEL pensioners.  N9.48 billion — Initial 50% payment of Back End Computation arrears to 3,959 eligible PHCN pensioners.  N5.09 billion — Balance of 10.66% and 12.95% pension increment arrears for 11,180 eligible pensioners from Assurance Bank, NICON, NITEL, and People’s Bank. PTAD described the settlement as a major milestone under the Renewed Hope Agenda, aimed at improving pensioners’ welfare. Executive Secretary Tolulope Odunaiya thanked President Tinubu for his support and highlighted how the intervention has restored confidence in the Defined Benefit Scheme by resolving years of inherited liabilities. “The successful liquidation of these liabilities underscores the Federal Government’s resolve to sustain pension reforms and ensure that Defined Benefit Scheme pensioners receive their rightful entitlements in a timely manner,” Odunaiya said. She added that the payments followed presidential approval in August 2025, with funds provided through the 2026 Appropriation Act. Odunaiya also commended the affected pensioners for their patience and reaffirmed PTAD’s commitment to efficient, transparent, and pensioner-focused service delivery. This latest settlement forms part of broader government efforts to address inherited pension obligations and strengthen the pension administration system.

10 hours ago

FG settles NITEL, PHCN, bank workers’ N39bn pension liabilities

The Federal Government has settled over N39bn in inherited pension liabilities for former NITEL, PHCN, and bank workers, fulfilling President Tinubu’s comm Read More: https://punchng.com/fg-settles-nitel-phcn-bank-workers-n39bn-pension-liabilities/

10 hours ago