FG Pays ₦39.6bn Outstanding Pension Debts to Retirees
By Patience Ikpeme
The Federal Government has cleared over ₦39.6 billion in old pension debts owed to thousands of retirees across the country.
The money was paid to former workers of defunct government agencies including the Nigerian Telecommunications Limited and its mobile arm (NITEL/MTEL), the Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON Insurance, and the People’s Bank of Nigeria.
A statement from the Federal Ministry of Finance on Friday noted that the head of the Pension Transitional Arrangement Directorate (PTAD), Mrs. Tolulope Odunaiya, briefed the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, on the development.
According to the Ministry, the Finance Minister received the PTAD boss to get a full update on the successful payment of the money under the old pension system known as the Defined Benefit Scheme.
Giving a breakdown of the money, Mrs. Odunaiya said that ₦25.05 billion went into paying the outstanding 35-month pension debt owed to 9,675 eligible retirees of NITEL and MTEL.
Another ₦9.48 billion was used to pay the first half of the special back-end pension calculation arrears to 3,959 PHCN retirees. The remaining ₦5.09 billion was used to clear the final half of the pension increment debts owed to 11,180 retirees of Assurance Bank, NICON, NITEL, and People’s Bank of Nigeria.
The PTAD boss explained that the payments were made possible after the President gave his approval in August 2025, and the money was later included in the 2026 budget.
She stated that this payment finally brings an end to all the old pension debts the current administration met on the ground, bringing much-needed relief to thousands of senior citizens who had waited for years.
The Finance Ministry noted that clearing these old debts is part of the implementation of the current administration’s Renewed Hope Agenda, focusing on fixing problems that had dragged on for a long time.
While praising PTAD for doing a good job with the payments, the Finance Minister said the settlement shows that the government is determined to fix old debts by managing public money carefully and governing responsibly.
“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity. The Ministry of Finance will continue to support measures that strengthen public financial management while ensuring that government obligations are met in a sustainable and timely manner,” Mr. Oyedele said.
The Ministry added that this achievement marks another major step forward for the government as it works to boost public trust, keep its promises, and improve the lives of Nigerian retirees.
