FG Settles N39.6bn Pension Arrears for NITEL, PHCN, Others
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FG Settles N39.6bn Pension Arrears for NITEL, PHCN, Others
By Alabidun Shuaib AbdulRahman
The Federal Government has announced the settlement of about N39.63bn in outstanding pension liabilities owed to retirees under the Defined Benefit Scheme, covering former workers of the defunct Nigerian Telecommunications Limited, NITEL, Power Holding Company of Nigeria, PHCN and other agencies.
The Pension Transitional Arrangement Directorate, PTAD disclosed on Friday that the payments were made in line with President Bola Tinubu’s Renewed Hope Agenda and his administration’s commitment to clearing inherited pension obligations.
According to the Directorate, the payments include N25.05bn representing the settlement of a 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL.
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It also paid N9.48bn, representing the initial 50 per cent of the Back End Computation arrears due to 3,959 eligible PHCN pensioners under the Defined Benefit Scheme.
PTAD further stated that N5.09bn was paid as the balance of the 50 per cent settlement of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
The Executive Secretary of PTAD, Tolulope Odunaiya, described the payments as a major milestone in the Federal Government’s efforts to improve the welfare of retirees and restore confidence in the administration of the Defined Benefit Scheme.
She thanked President Bola Tinubu for his support, noting that the administration had resolved all outstanding inherited pension liabilities under the scheme.
Odunaiya explained that the payments followed presidential approval granted to the Directorate in August 2025, while the required funds were provided in the 2026 Appropriation Act.
She added that the liquidation of the liabilities demonstrated the government’s commitment to sustaining pension reforms and ensuring that retirees received their entitlements promptly.
The PTAD boss also commended affected pensioners for their patience while the outstanding liabilities remained unresolved, assuring them that the Directorate would continue to prioritise efficient, transparent and pensioner-centred service delivery.
