FG settles N39.6bn inherited pension liabilities

The Federal Government has settled more than N39.6 billion in inherited pension liabilities under the Defined Benefit Scheme (DBS), bringing to a close long-standing pension obligations owed to thousands of retirees across several defunct public enterprises and financial institutions.

The development was disclosed on Thursday during a briefing by the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs Tolulope Odunaiya, to the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.

According to PTAD, the payments comprise N25.05 billion to offset 35 months of outstanding pension liabilities owed to 9,675 eligible pensioners of the defunct NITEL/MTEL; N9.48 billion as the initial 50 per cent payment of the Back End Computation (BEC) arrears to 3,959 eligible pensioners of the Power Holding Company of Nigeria (PHCN); and N5.09 billion representing the balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.

Odunaiya explained that the settlement followed presidential approval granted in August 2025, while funding for the payments was provided under the 2026 Appropriation Act.

She said the exercise marks the completion of all inherited pension liabilities under the Defined Benefit Scheme, providing long-awaited relief to thousands of pensioners.

Commending PTAD for the successful execution of the payments, Oyedele described the settlement as a demonstration of the federal government’s commitment to meeting longstanding obligations through prudent fiscal management and responsible governance.

“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity. The Ministry of Finance will continue to support measures that strengthen public financial management while ensuring that government obligations are met in a sustainable and timely manner,” the minister said.