Thousands of retired federal government workers are set to receive long-awaited pension payments as the federal government moves to clear more than 39 billion naira in outstanding pension liabilities owed to pensioners under the Defined Benefit Scheme.
The payment according to a statement released by the Pension Transitional Arrangement Directorate and signed by it’s head of corporate communu, Gbenga Ajayi, the payment cover former workers of the defunct NITEL and MTEL, PHCN, Assurance Bank, NICON and People’s Bank.
The move is expected to bring relief to many retirees who have waited years for their entitlements.
For thousands of pensioners, the announcement signals the end of years of uncertainty and financial hardship.
The Federal Government says it has paid over 39 billion naira in outstanding pension liabilities, benefiting pensioners under the Defined Benefit Scheme across several defunct government-owned organisations.
The largest payment, amounting to over 25 billion naira, settles a 35-month pension backlog owed to 9,675 retirees of the defunct NITEL and MTEL.
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Nearly 9.5 billion naira has also been released as the first half of Back End Computation arrears for 3,959 PHCN pensioners, while more than 5 billion naira covers outstanding pension increment arrears for over 11,000 retirees from Assurance Bank, NICON, NITEL and People’s Bank.
The Pension Transitional Arrangement Directorate says the payments followed presidential approval granted in August 2025, with funding provided in the 2026 Appropriation Act.
Executive Secretary of PTAD, Tolulope Odunaiya, says clearing the inherited liabilities reflects the government’s commitment to restoring confidence in the Defined Benefit Pension Scheme and ensuring pensioners receive their entitlements.
For many retirees, the payments represent more than figures on paper—they offer an opportunity to settle medical bills, support their familie, and regain a measure of financial stability after years of waiting.
The Pension Transitional Arrangement Directorate has assured pensioners that it will continue to improve transparency and efficiency in pension administration while sustaining timely payment of benefits.
(Editor: Ebuwa Omo-Osagie)
