The Federal Government has disbursed ₦39.63 billion in outstanding pension liabilities to 24,814 eligible pensioners under the Defined Benefit Scheme (DBS), as part of efforts to clear inherited obligations owed to retired public servants.

The payment was confirmed in a statement issued on Friday by the Federal Ministry of Finance, which described the exercise as another step toward improving the welfare of pensioners and restoring confidence in the country’s pension administration.

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According to the ministry, the payment covers pensioners of several defunct public institutions, including the Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON Insurance, and the former People’s Bank of Nigeria.

The disbursement was carried out by the Pension Transitional Arrangement Directorate (PTAD) under the supervision of the Federal Ministry of Finance following a directive to prioritise verified pension obligations.

Speaking on the development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the payment reflects the Tinubu administration’s commitment to ensuring that retired public servants receive the benefits they earned during their years of service.

He noted that the initiative goes beyond financial figures, describing it as a demonstration of the government’s resolve to honour the sacrifices made by Nigerian workers after retirement.

According to the minister, restoring confidence in the pension system remains a key objective of the administration’s broader economic and social welfare agenda.

The ministry disclosed that ₦25.05 billion was paid to settle 35 months of outstanding pension liabilities owed to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL and MTEL.

PTAD also disbursed ₦9.48 billion, representing the first 50 percent payment of the Back-End Computation (BEC) arrears due to 3,959 eligible pensioners of the defunct Power Holding Company of Nigeria.

In addition, ₦5.09 billion was paid as the outstanding balance of the 10.66 percent and 12.95 percent pension increment arrears owed to 11,180 eligible pensioners of Assurance Bank, NICON Insurance, NITEL, and the defunct People’s Bank of Nigeria.

The total payments amount to ₦39.63 billion and benefited 24,814 retirees across the affected organisations.

The Finance Minister said every pension payment represents years of dedicated public service and acknowledged the patience shown by retirees and their families while awaiting the settlement of outstanding entitlements.

He assured that the Federal Government would continue implementing policies aimed at improving the welfare of senior citizens while maintaining fiscal discipline and accountability in public finance management.

The minister also commended the management and staff of the Pension Transitional Arrangement Directorate for the timely execution of the payment process, describing the exercise as evidence of effective collaboration among government institutions.

He pledged continued support for PTAD to strengthen pension administration and ensure that verified pension obligations are settled as resources become available.

Meanwhile, the Director-General of PTAD, Mrs. Tolulope Odunaiya, expressed appreciation to the Minister of Finance for providing the leadership and support that enabled the release and prompt disbursement of the funds.

She reaffirmed the Directorate’s commitment to delivering efficient, transparent, and responsive pension administration for all eligible retirees under the Defined Benefit Scheme.