FG Releases ₦5.12bn Pension Arrears to Over 90,000 Retirees Under DBS

The Federal Government has released ₦5.12 billion in pension arrears to 90,689 retirees under the Defined Benefit Scheme (DBS), fulfilling part of its pledge to settle outstanding pension obligations.

The Pension Transitional Arrangement Directorate (PTAD), in a statement dated August 11, 2025, and signed by its Head of Corporate Communications, Olugbenga Ajayi, confirmed the disbursement, noting it covered pensioners across the four pension departments. “In keeping with its assurance to clear outstanding pension liabilities as funds are disbursed by the Federal Government, the Pension Transitional Arrangement Directorate (PTAD) has finalised the disbursement of ₦5,119,328,000 to 90,689 pensioners across the four pension departments, reaffirming its continued dedication and unwavering commitment to pensioners’ welfare,” the statement read.

A breakdown of the payment shows that 8,626 pensioners from the Customs, Immigration, and Prisons Pension Department (CIPPD) got ₦276,032,000; 9,681 pensioners under the Police Pension Department received ₦619,584,000; 12,773 retirees in the Civil Service Pension Department got ₦408,736,000; while the largest share, ₦3,814,976,000, went to 59,609 retirees in the Parastatals Pension Department. PTAD said the move aligned with the Renewed Hope Agenda of President Bola Tinubu, aimed at ensuring all pensioners receive their entitlements.

The announcement comes amid protests by members of the Nigerian Union of Pensioners over unpaid benefits, including up to 35 months of arrears and the non-payment of a ₦35,000 palliative. The demonstrators, comprising retirees from agencies such as the defunct Nigeria Telecommunications Limited (NITEL), Federal Radio Corporation of Nigeria (FRCN), and the Nigerian Railway Corporation (NRC), gathered on Monday to press their demands.

Two days earlier, on August 9, 2025, President Tinubu approved a series of measures to improve the welfare of DBS pensioners. According to PTAD, these include immediate implementation of an extra budgetary allocation to enforce new pension rates, adoption of a proposed pension harmonisation policy to be factored into the 2026 budget, and the provision of health insurance coverage for all DBS pensioners.

The President also directed that unpaid liabilities to NITEL/MTEL pensioners and other retirees from defunct parastatals be included in the 2026 budget proposal. These reforms, based on recommendations submitted by Odunaiya, feature a new pension rate of ₦32,000 and incremental increases of 10.66 per cent and 12.95 per cent for pensioners from defunct and privatised agencies.

PTAD noted that it had previously cleared arrears related to the first pension increment of 20 per cent to 28 per cent, implemented in January 2024, marking another step in Nigeria’s ongoing pension reform process.