FG settles NITEL, PHCN, bank workers’ N39bn pension liabilities

The Federal Government has announced the payment of more than N39 billion in inherited pension liabilities owed to thousands of pensioners under the Defined Benefit Scheme, saying the settlement fulfils President Bola Tinubu’s commitment to clearing longstanding pension debts.

The payment, announced on Friday by the Pension Transitional Arrangement Directorate, covers outstanding liabilities owed to pensioners of the defunct Nigerian Telecommunications Limited, Mobile Telecommunications Limited, Power Holding Company of Nigeria, Assurance Bank, NICON and the defunct People’s Bank of Nigeria.

According to PTAD, the payments include N25.05 billion representing a 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL, N9.48 billion representing the initial 50 per cent payment of Back End Computation arrears to 3,959 eligible PHCN pensioners, and N5.09 billion covering the balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible pensioners of Assurance Bank, NICON, NITEL and People’s Bank.

The directorate described the development as a major milestone in the Federal Government’s efforts to improve the welfare of pensioners under the Renewed Hope Agenda.

Speaking on the development, PTAD Executive Secretary, Tolulope Odunaiya, thanked Tinubu for what she described as his steadfast support for pension administration.

She said, “These landmark achievements mark yet another significant milestone in the Federal Government’s unwavering commitment to safeguarding the welfare and dignity of Defined Benefit Scheme pensioners. It is a clear demonstration of the visionary leadership of His Excellency, President Bola Ahmed Tinubu, whose Renewed Hope Agenda places priority on social protection, inclusive governance, and the well-being of senior citizens.”

Odunaiya added that the President’s intervention had restored confidence in the Defined Benefit Scheme by resolving years of inherited liabilities.

“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,” she said.

The PTAD boss disclosed that the payments followed presidential approval granted to the directorate in August 2025, with the required funds later provided through the 2026 Appropriation Act.

According to her, “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 also expressed appreciation to pensioners for their patience while the outstanding obligations were being addressed.

“The Directorate sincerely appreciates all affected Defined Benefit Scheme pensioners for their patience and confidence throughout the period the liabilities remained outstanding. PTAD remains dedicated to sustaining efficient, transparent and pensioner-centred service delivery, reinforcing the Federal Government’s commitment to safeguarding the dignity and well-being of all Defined Benefit Scheme pensioners,” Odunaiya said.

The settlement is the latest in a series of measures by the Federal Government aimed at addressing inherited pension obligations and strengthening confidence in the country’s pension administration system.