By Daniel Oluwatobiloba Popoola
President Bola Ahmed Tinubu has approved the full settlement of over N39 billion in inherited pension liabilities owed to thousands of Defined Benefit Scheme (DBS) pensioners of the defunct NITEL/MTEL, PHCN and other Federal Government agencies, in what the Pension Transitional Arrangement Directorate (PTAD) described as a major milestone in the administration’s pension reform programme.
The development was announced in a statement issued on Friday, 3 July, 2026 by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, who said the payments were made in fulfilment of President Tinubu’s Renewed Hope Agenda and his commitment to liquidating outstanding pension liabilities inherited by the Federal Government.
According to the Directorate, the Federal Government settled N25.05 billion, representing the outstanding 35-month pension arrears owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.
PTAD also disclosed that N9.48 billion was released as the initial 50 per cent payment of the Back End Computation (BEC) arrears due to 3,959 eligible Defined Benefit Scheme pensioners of the defunct Power Holding Company of Nigeria (PHCN).
In addition, the government paid N5.09 billion, representing the remaining 50 per cent balance 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 Directorate described the payments as another landmark achievement that underscores the Federal Government’s commitment to protecting the welfare and dignity of pensioners under the Defined Benefit Scheme.
It said the settlement reflects President Tinubu’s commitment to social protection, inclusive governance and the welfare of senior citizens under the Renewed Hope Agenda.
Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, expressed appreciation to President Tinubu for what she described as his steadfast support and visionary leadership.
She said the President’s commitment had strengthened the administration of the Defined Benefit Scheme and restored confidence among pensioners.
“Under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of Defined Benefit Scheme pensioners,” Odunaiya said.
She disclosed that the payments became possible following presidential approval granted to PTAD in August 2025, while the necessary funds were subsequently provided in the 2026 Appropriation Act.
According to her, the successful liquidation of the liabilities demonstrates the Federal Government’s resolve to sustain pension reforms and ensure that pensioners receive their entitlements promptly.
“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, consistent with the objectives of the Renewed Hope Agenda,” she said.
The Executive Secretary thanked affected pensioners for their patience and confidence throughout the period the liabilities remained unpaid.
She reaffirmed PTAD’s commitment to efficient, transparent and pensioner-centred service delivery, saying the Directorate would continue to support the Federal Government’s efforts to safeguard the welfare and dignity of all Defined Benefit Scheme pensioners.
