FG settles N39.6 billion pension debts for over 24,000 retirees

The federal government has paid off N39.6 billion in pension debts. This clears long-standing payments owed to more than 24,000 retirees under the Defined Benefit Scheme.

The announcement came on Friday. This payment takes care of pension obligations from old public companies and financial institutions. Many pensioners who have been waiting for their money will finally see some relief.

The news was shared during a meeting between the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya. Efe Ovuakporie, the ministry’s Head of Information and Public Relations, issued a statement about it.

Mrs. Odunaiya explained that N25.05 billion went to clear 35 months of pension debts for 9,675 eligible pensioners from the old Nigerian Telecommunications Limited (NITEL) and its mobile arm, MTEL.

She also mentioned that N9.48 billion was paid as the first half of the Back-End Computation debts to 3,959 eligible pensioners from the old Power Holding Company of Nigeria (PHCN).

In addition, N5.09 billion was used to settle the remaining pension increase debts owed to 11,180 retirees from Assurance Bank, NICON, NITEL, and People’s Bank.

Mrs. Odunaiya said the president approved these payments in August 2025. Funding for this came from the 2026 Appropriation Act.

She noted that this action has cleared all inherited pension debts under the Defined Benefit Scheme. "The payments have cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to the affected pensioners," she said.

Mr. Oyedele praised PTAD for carrying out the payment program successfully. He called it proof of the government’s commitment to good financial management and keeping promises to retirees.

He added that settling these debts restores trust in the pension system and helps maintain the dignity of retired public workers.

The minister also confirmed the government’s commitment to reforms. These reforms aim to improve public financial management and enhance pension administration across Nigeria.

He said this payment aligns with President Bola Tinubu’s Renewed Hope Agenda. This agenda aims to boost the welfare of pensioners while building more trust in public institutions.