PTAD Finalises N39.6bn Pension Settlement for Defunct NITEL, PHCN and Bank Retirees

The Federal Government has successfully settled over N39.6 billion in longstanding pension liabilities owed to thousands of retirees of defunct public enterprises and financial institutions under the Defined Benefit Scheme (DBS).

The payment, announced on Friday, July 3, 2026, by the Pension Transitional Arrangement Directorate (PTAD), brings relief to more than 24,000 pensioners who had waited years for their entitlements.

PTAD Executive Secretary, Mrs. Tolulope Odunaiya, disclosed the development during a briefing with the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.

According to PTAD, the payments comprise N25.05 billion representing the outstanding 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL/MTEL.

Another N9.48 billion represents the initial 50 per cent payment of the Back End Computation (BEC) arrears to 3,959 eligible PHCN pensioners.

Additionally, N5.09 billion cleared the balance of pension increment arrears due to 11,180 eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.

Mrs. Odunaiya explained that the settlement followed presidential approval granted in August 2025, with the required funding subsequently provided under the 2026 Appropriation Act.

She stated, “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”.

“The payments have cleared all inherited pension liabilities under the Defined Benefit Scheme, bringing long-awaited relief to the affected pensioners,” she added.

Commending PTAD for the successful execution, Minister Oyedele described the settlement as a demonstration of the government’s commitment to prudent fiscal management.

“For many pensioners, this is more than the settlement of outstanding arrears; it is the restoration of confidence and dignity,” Oyedele said.

The minister reaffirmed the government’s commitment to reforms aimed at strengthening public financial management and improving pension administration across the country.

PTAD described the development as a major milestone in the Federal Government’s efforts to improve the welfare of pensioners under the Renewed Hope Agenda.