Federal Government announces ₦39.63bn pension arrears payment

The Federal Government has disbursed ₦39.63 billion to 24,814 pensioners in compliance with the defined benefit scheme.

The news about the disbursement came from a press release published by the Federal Ministry of Finance on Friday. The development is being seen as one of the significant milestones in addressing the outstanding pension liabilities of the government.

The press release indicated that the disbursement of the money was done by the Pension Transitional Arrangement Directorate (PTAD). The PTAD is operating under the jurisdiction of the Federal Ministry of Finance. According to the ministry, the directive to disburse the money was issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

According to the press release, the development has brought joy and hope to thousands of pensioners who have been waiting for many years for the disbursement of their pension liabilities.

This, according to the ministry, is an indication of the Federal Government’s effort to fulfill its obligation towards the pensioners and the disbursement of verified pension liabilities.

According to Mr. Oyedele, this payment has shown the dedication of the administration to ensuring that retirees receive their benefits.

“A nation that values service must also honour those who gave their productive years in its service. This payment is about people, not just figures. It is about restoring confidence, rewarding sacrifice, and giving thousands of pensioners and their families the reassurance that they have not been forgotten,” Efe Ovuakporie, Head of Information and Public Relations at the Ministry, quoted Oyedele as saying.

The Minister explained that the disbursement covered three categories of outstanding pension obligations that had accumulated over the years.

According to him, PTAD paid ₦25,053,703,604.12 to clear the outstanding 35-month pension liability owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.

The Directorate also disbursed ₦9,481,886,576.53, representing the initial 50 per cent payment of the Back-End Computation (BEC) arrears due to 3,959 eligible PHCN Defined Benefit Scheme pensioners.

In addition, PTAD paid ₦5,094,784,054.27, representing the outstanding 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible Defined Benefit Scheme pensioners of the defunct Assurance Bank, NICON Insurance, NITEL and People’s Bank of Nigeria. 

For many of the beneficiaries, the payments mark the end of years of uncertainty. They provide the means to meet pressing family needs, pay medical bills, support loved ones, and enjoy retirement with greater peace of mind.

Oyedele said the government remains mindful of the real lives behind every pension payment.

The Minister said: “Behind every approved payment is a retiree who served this country faithfully, a family that has waited patiently, and a story that deserves a positive ending.

“We will continue to support measures that improve the lives of our senior citizens while maintaining fiscal discipline and accountability.”

He commended the management and staff of PTAD for the prompt implementation of the directive, describing the successful disbursement as evidence of what can be achieved when institutions work together in the public interest.

“PTAD has demonstrated professionalism in implementing this exercise. The Ministry will continue to provide the policy direction and support required to strengthen pension administration and ensure that verified obligations are settled as resources become available,” Oyedele said.

The Director-General of PTAD, Mrs. Tolulope Odunaiya, said the Directorate remained focused on delivering efficient pension administration and expressed appreciation to the Honourable Minister for his leadership and support, which made the release and prompt disbursement of the funds possible.

The latest payment represents another important step in the Federal Government’s efforts to improve the welfare of retirees and ensure that public institutions deliver meaningful outcomes for Nigerians under the administration of President Bola Tinubu