BY NGOZI ONYEAKUSI

Taiwo Oyedele

The Federal Government has successfully cleared N39.6 billion in outstanding pension arrears.

This being longstanding liabilities owed to more than 24,000 retirees under the Defined Benefit Scheme (DBS).

The payment, announced on Friday, covers pension obligations inherited from defunct public enterprises and financial institutions, bringing relief to thousands of pensioners who had waited years for their entitlements.

According to a statement issued by the Head of Information and Public Relations, Ministry of Finance, Efe Ovuakporie, the payment was disclosed  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,

Odunaiya’s briefing during the meeting highlighted the clearance of inherited pension obligations that had remained outstanding for years.

She said N25.05 billion was used to settle 35 months of pension arrears owed to 9,675 eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile subsidiary, MTEL.

She added that N9.48 billion was paid as the first 50 per cent instalment of Back-End Computation arrears due to 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN).

According to her, another N5.09 billion cleared the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.

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

She said the exercise has now cleared all inherited pension liabilities under the Defined Benefit Scheme.

“The payments have cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited reli

Commending PTAD for the successful execution of the exercise, the minister said the settlement underscored the Federal Government’s resolve to address 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,” Oyedele said.