The Federal Government has approved the payment of more than ₦39.6 billion to clear inherited pension liabilities owed to 24,814 retirees under the Defined Benefit Scheme, fulfilling a longstanding commitment to settle outstanding obligations accumulated over several years.

The payment was announced on Friday by the Pension Transitional Arrangement Directorate (PTAD), which said the funds cover pension arrears owed to former employees of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON and the defunct People’s Bank of Nigeria.

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PTAD disclosed that ₦25.05 billion will settle a 35-month pension liability owed to 9,675 eligible pensioners of NITEL and MTEL.

The directorate also approved ₦9.48 billion as the initial 50 per cent payment of Back End Computation arrears for 3,959 eligible PHCN pensioners.

In addition, ₦5.09 billion will cover the outstanding 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of Assurance Bank, NICON, NITEL and People’s Bank.

The government described the settlement as a significant step towards strengthening confidence in pension administration and improving the welfare of retirees.

PTAD Executive Secretary Tolulope Odunaiya said the payment reflects the government’s determination to honour its obligations to pensioners.

“These landmark achievements mark yet another significant milestone in the Federal Government’s unwavering commitment to safeguarding the welfare and dignity of Defined Benefit Scheme pensioners,” Odunaiya said.

She added that the intervention has helped resolve years of inherited liabilities that had remained unpaid.

“Under the President’s leadership, the Directorate has successfully resolved all longstanding inherited pension liabilities, bringing lasting relief to thousands of Defined Benefit Scheme pensioners.”

According to PTAD, the payments followed presidential approval granted in August 2025, while funding for the exercise was provided through the 2026 Appropriation Act.

The directorate also thanked affected retirees for their patience during the period the liabilities remained outstanding, pledging to sustain transparent and pensioner-focused service delivery.

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The latest settlement forms part of the government’s broader efforts to strengthen pension administration and address inherited obligations that have affected thousands of retirees for years.