Tinubu Approves New Measures to Boost Pensioners’ Welfare

President Bola Tinubu has given the green light to a series of major reforms aimed at improving the welfare of retirees under the Defined Benefit Scheme (DBS).

According to Olugbenga Ajayi, Head of Corporate Communications at the Pension Transitional Arrangement Directorate (PTAD), the approvals mark “a significant milestone in Nigeria’s pension reform efforts.” He recalled that PTAD had earlier cleared arrears from the first pension increment of 20% to 28%, which took effect in January 2024.

Under the President’s directive, an extra budgetary allocation will be immediately implemented to enforce new pension rates for DBS pensioners. The reforms also include the adoption of a proposed pension harmonisation policy, set to take effect in the 2026 pension budget, as well as health insurance coverage for all DBS pensioners to guarantee access to essential healthcare.

The President further ordered that unpaid liabilities owed to NITEL/MTEL retirees and other pensioners from defunct parastatals be factored into the 2026 budget proposal.

These measures follow a formal request by Odunaiya, who appealed to the Presidency for emergency budgetary allocations to fast-track critical pension reforms. The proposed changes feature a new N32,000 pension rate, along with incremental increases of 10.66% and 12.95% for pensioners from defunct and privatised agencies. Other provisions include harmonising pension rates across all DBS retirees and enrolling them into the National Health Insurance Scheme (NHIS).

“We are grateful for the President’s leadership in prioritising the welfare of our retirees,” Odunaiya said. “This is a transformative moment for pension administration in Nigeria.”

In June, PTAD confirmed it had disbursed N8.6 billion in pension arrears to 148,625 eligible DBS pensioners across various sectors, reflecting the implementation of the N32,000 pension increment approved by the President.

Breakdown of the disbursements, according to Ajayi, includes:

● N5.7 billion to 59,342 pensioners in the Parastatals Pensions Department (PaPD)

● N2.3 billion to 71,084 pensioners in the Civil Service Pensions Department (CSPD)

● N310 million to 9,579 pensioners in the Police Pension Department (PPD)

● N276 million to 8,620 pensioners under the Customs, Immigration, and Correctional Service Pension Department