Federal Government Clears N5.12 Billion Pension Arrears for 90,689 Retirees.
The Federal Government of Nigeria has disbursed N5.12 billion to settle pension arrears for 90,689 Defined Benefit Scheme (DBS) pensioners, marking a significant step in addressing long-standing pension liabilities. The announcement, made by the Pension Transitional Arrangement Directorate (PTAD) on Monday, August 11, 2025, underscores the government’s commitment to improving the welfare of retirees under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
According to PTAD’s Head of Corporate Communications, Olugbenga Ajayi, the funds have been distributed across four pension departments, covering arrears for one to two months depending on the category. The breakdown includes N3.81 billion paid to 59,609 pensioners under the Parastatal Pension Department, N619.58 million to 9,681 pensioners in the Pensioners Payment Department, N408.73 million to 12,773 retirees in the Civil Service Pension Department, and N276.03 million to 8,626 pensioners in the Customs, Immigration, and Prisons Pension Department.
This payout provides much-needed relief to retirees, many of whom have faced financial hardship due to delayed pension payments. PTAD emphasised that the disbursement aligns with its ongoing efforts to clear outstanding liabilities as funds are released by the Federal Government. The agency reiterated its dedication to ensuring pensioners receive their rightful entitlements promptly, restoring dignity and financial stability to those who served the nation.
The initiative follows President Tinubu’s approval of measures to address pension backlogs and introduce new welfare benefits for DBS pensioners. The government’s broader strategy includes plans to issue bonds worth N758 billion to clear remaining pension debts, as confirmed by the Minister of Finance, Wale Edun, earlier this year. This move has been welcomed by pensioners and analysts alike, who see it as a positive step towards strengthening Nigeria’s pension system.
PTAD has urged retirees to contact their respective Pension Fund Administrators to complete any necessary documentation to access their benefits. The agency also encouraged pensioners to report any issues with payments to ensure swift resolution. This latest disbursement is expected to ease financial pressures for thousands of retirees, reinforcing the government’s promise to prioritise their welfare.