PTAD clears N1.7 billion in final pension increment arrears

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Keypoints

• The Pension Transitional Arrangement Directorate (PTAD) has paid the final month of arrears for the N32,000 pension increase.
• A total of N1.73 billion was distributed to 54,206 eligible pensioners under the Defined Benefit Scheme (DBS).
• The payment marks the completion of a full 13-month arrears cycle spanning from August 2024 to August 2025.
• Two major groups benefited: Parastatals (25,804 retirees) and Tertiary Education/Health (28,402 retirees).
• Certain retirees from agencies like NITEL and PHCN were excluded from this specific increment as they had already received separate percentage-based increases.

Main Story

The Federal Government has fulfilled its outstanding financial commitment to over 54,000 retirees across the country.

In a statement released on Monday, April 27, 2026, PTAD announced that it has successfully disbursed the final installment of the N32,000 pension increment arrears.

This concludes a long-term payment plan that began after the National Salaries, Incomes and Wages Commission (NSIWC) approved the raise effective July 29, 2024.

PTAD Head of Corporate Communications, Mr. Olugbenga Ajayi, confirmed that the directorate has now settled all 13 months of arrears due to eligible pensioners.

By paying these arrears in phases over the last year, PTAD aimed to manage its cash flow while ensuring that retirees eventually received their full entitlements.

The completion of these payments is seen as a major step in the Renewed Hope Agenda, focusing on the welfare of those who served in parastatals, health institutions, and universities.

The Issues

The primary challenge is the inflationary-impact gap; while the N32,000 increase was approved in 2024, the purchasing power of that increment has been affected by the rising cost of living by the time the final arrears were paid in 2026. Authorities must solve the problem of eligibility-confusion, as many retirees from organizations like PHCN or NITEL may still expect the N32,000 raise despite being legally covered by separate percentage-based increases.

Furthermore, there is a data-accuracy risk; with over 54,000 beneficiaries, ensuring that payments reach the correct bank accounts without delay is a massive administrative task. To succeed, PTAD must maintain its “I Am Alive” verification portal to prevent “ghost pensioners” from draining resources meant for legitimate retirees.

What’s Being Said

• “With this final payment, all outstanding obligations of the N32,000 pension increment have been fully settled,” stated Olugbenga Ajayi.
• Ajayi noted that 28,402 pensioners in the Tertiary Education and Health sector received over N908 million in this final round.

What’s Next

• Eligible pensioners who have not seen their alerts are expected to contact PTAD through their official complaint channels or state offices.
• The directorate is anticipated to focus on the next round of verification exercises to ensure the pension database remains updated for 2026.
• There may be a push from labor unions to review these fixed increments again if economic pressures continue to rise later this year.
• PTAD is likely to continue its transition toward a fully digital payment system to further reduce the time it takes to process arrears in the future.

Bottom Line

The total settlement of these arrears is a significant relief for tens of thousands of Nigerian households. By closing the chapter on the 2024 increment, PTAD has demonstrated that it can manage complex, multi-year payment schedules to ensure that retirees eventually get every kobo they are owed.