THERE is a huge relief for pensioners as the Federal Government has disbursed ₦5.12 billion in pension arrears to 90,689 retirees under the defined benefit scheme (DBS).
The Pension Transitional Arrangement Directorate (PTAD) disclosed that it had finalised the disbursement of the funds to the pensioners across the four pension departments.
The Head of Corporate Communications Unit, PTAD, Olugbenga Ajayi, said in a statement on Monday, August 11, that the move was in line with the government’s commitment to clear outstanding pension liabilities.
“In keeping with its assurance to clear outstanding pension liabilities as funds are disbursed by the Federal Government, the Pension Transitional Arrangement Directorate (PTAD) has finalised the disbursement of ₦5,119,328,000 to 90,689 pensioners across the four pension departments, re-affirming its continued dedication and unwavering commitment to pensioners’ welfare,” PTAD said.
A breakdown in the statement showed that 8,626 pensioners in the Customs, Immigration, and Prisons Pension Department (CIPPD) received ₦276,032,000, while 9,681 pensioners under the Police Pension Department received ₦619,584,000.
PTAD also stated that while 12,773 retirees in the Civil Service Pension Department received ₦408,736,000, 59,609 retirees in the Parastatals Pension Department received ₦3,814,976,000
The agency stated that the payment re-affirmed the administration’s ongoing commitment to “ensuring that pensioners receive their due entitlements in line with the Renewed Hope Agenda of President Bola Tinubu”.
The announcement by PTAD came as retirees under the auspices of the Nigerian Union of Pensioners on Monday protested over their unpaid entitlements, allegedly running up to 35 months of pension arrears, and non-payment of ₦35,000 palliative.
The protesters were said to be retirees from various agencies, including the defunct Nigeria Telecommunications Limited (Nitel), Federal Radio Corporation of Nigeria (FRCN), and the Nigerian Railway Corporation (NRC).
On August 9, 2025, President Tinubu approved measures aimed at improving the welfare of pensioners under the Defined Benefit Scheme (DBS).
An earlier statement issued by PTAD’s spokesperson, Olugbenga Ajayi, which confirmed the approval, stated that the development marked a significant milestone in Nigeria’s pension reform efforts.
Ajayi further noted that PTAD had previously settled arrears related to the first pension increment of 20 per cent to 28 per cent, which came into effect in January 2024.
The agency said the approvals, which aligned with Tinubu’s Renewed Hope Agenda, contained the immediate implementation of an extra budgetary allocation to enforce new pension rates for DBS pensioners.
The president also endorsed the adoption of a proposed pension harmonisation policy, which will be incorporated into the 2026 pension budget, while health insurance coverage for all DBS pensioners was approved, ensuring access to essential healthcare services, the agency said.
The president’s directive included unpaid liabilities owed to NITEL/MTEL pensioners and other retirees from defunct parastatals in the 2026 budget proposal.
The approvals followed a formal request submitted by Odunaiya, who had urged the Presidency to authorise emergency budgetary allocations to implement critical pension reforms.
The proposed reforms include a new pension rate of N32,000 and incremental increases of 10.66 per cent and 12.95 per cent for pensioners from defunct and privatised agencies.
The ICIR reported in February that the government has approved a N758 billion pension bond to settle all outstanding liabilities under the contributory pension scheme.
Bond issuance is a way a company or a nation raises money as a loan repayable on agreed interest terms to sort out some budgetary or financial burden.
The government also said the bond would be released within three months to fully settle all outstanding pension liabilities under the contributory pension scheme (CPS).
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.