By Our Correspondent
The Federal Government has disbursed N13.87 billion in outstanding pension increment arrears to 18,822 retirees under the Defined Benefit Scheme (DBS), as part of efforts to clear accumulated pension liabilities covering the period from June 2021 to October 2026.
The payments, made through the Pension Transitional Arrangement Directorate (PTAD), cover arrears arising from the approved 13.8 per cent and 20.55 per cent pension increases for eligible retirees, with former employees of the defunct Power Holding Company of Nigeria (PHCN) accounting for the largest share.
According to a statement issued in Abuja on Sunday by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, N9.42 billion was paid to former PHCN pensioners to settle 65 months of arrears arising from the 13.8 per cent pension increase, effective from June 1, 2021, to October 31, 2026.
Another N4.46 billion was disbursed to eligible pensioners from five other defunct institutions: Peoples Bank of Nigeria, Assurance Bank, NICON Insurance, Nigerian Reinsurance Corporation and NITEL/MTEL.
The payments cover 22 months of arrears resulting from the 20.55 per cent pension increment, effective from January 1, 2025, to October 31, 2026.
Both pension increases were approved by the National Salaries, Incomes and Wages Commission through a circular dated January 14, 2026.
The latest disbursement forms part of the Federal Government’s efforts to settle inherited pension obligations and address outstanding entitlements owed to retirees of defunct public institutions under the Defined Benefit Scheme.
For the affected pensioners, the payment represents financial relief following years of delays in the implementation of approved pension increases.
Ajayi said the disbursement reflected the Federal Government’s commitment to improving the welfare of senior citizens and resolving longstanding challenges in pension administration.
He added that PTAD would sustain efforts to strengthen pension administration, ensure timely payment of entitlements and improve the welfare of retirees under the scheme.
The latest payment comes amid a series of interventions by the directorate to clear outstanding pension liabilities and correct payment discrepancies affecting eligible beneficiaries.
On August 11, 2025, the Federal Government released N5.12 billion through PTAD to 90,689 Defined Benefit Scheme pensioners across the Civil Service, Police, Parastatals, Customs, Immigration and Prisons pension departments.
In August 2026, the directorate also disbursed N3.8 billion in pension arrears to 30,356 retirees following a review of their pension computations.
Similarly, N18.96 billion was paid in September 2026 to settle outstanding pension computation arrears owed to 3,958 eligible former PHCN employees.
Earlier, in April 2026, PTAD disbursed approximately N1.73 billion to 54,206 eligible DBS pensioners as the final one-month arrears of the N32,000 pension increment.
The successive disbursements underscore the scale of pension liabilities inherited from former ministries, departments and agencies, as well as defunct government institutions.
However, despite the latest N13.87 billion payment, the government faces the continuing task of clearing outstanding pension obligations and ensuring that retirees receive their entitlements promptly without prolonged delays.
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