The Federal Government has released ₦5.12 billion in outstanding pension arrears to 90,689 retirees enrolled under the Defined Benefit Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) confirmed on Monday.
In a statement dated August 11, 2025, and signed by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, the agency said the payment was part of the administration’s pledge to address pending pension obligations. According to PTAD, “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 breakdown shows that 8,626 pensioners in the Customs, Immigration, and Prisons Pension Department (CIPPD) were paid ₦276,032,000, while 9,681 beneficiaries in the Police Pension Department received ₦619,584,000. In the Civil Service Pension Department, 12,773 retirees were allocated ₦408,736,000, and the Parastatals Pension Department accounted for the largest share, with 59,609 retirees receiving ₦3,814,976,000.
PTAD emphasised that the disbursement underscored the Federal Government’s determination to uphold the welfare of pensioners in line with President Bola Tinubu’s Renewed Hope Agenda.
The announcement coincided with protests by members of the Nigerian Union of Pensioners, who gathered on Monday to demand settlement of up to 35 months’ unpaid pensions and non-payment of the ₦35,000 palliative. The demonstrators were reported to include retirees from agencies such as the defunct Nigeria Telecommunications Limited (NITEL), the Federal Radio Corporation of Nigeria (FRCN), and the Nigerian Railway Corporation (NRC).
Just two days earlier, on August 9, 2025, President Tinubu had approved several measures to enhance the welfare of DBS pensioners. PTAD’s statement described the development as a major step in Nigeria’s pension reform process. Ajayi noted that the directorate had earlier cleared arrears from the first pension increment of 20 per cent to 28 per cent, effective January 2024.
The President’s approvals, aligned with his Renewed Hope Agenda, included an immediate extra budgetary allocation to implement updated pension rates for DBS retirees, as well as the adoption of a harmonisation policy set to take effect in the 2026 pension budget. Health insurance coverage for all DBS pensioners was also sanctioned to guarantee access to essential medical services.
Additionally, the directive covered unpaid liabilities to NITEL/MTEL pensioners and retirees from other defunct parastatals, with provisions to be included in the 2026 budget proposal. These decisions followed a formal appeal by Odunaiya, urging the Presidency to approve emergency allocations for crucial pension reforms.
Under the proposed reforms, the new pension rate would be set at ₦32,000, with incremental increases of 10.66 per cent and 12.95 per cent for retirees from defunct and privatised agencies.
What you should know
The Federal Government has disbursed ₦5.12 billion to settle pension arrears for over 90,000 retirees under the Defined Benefit Scheme, with the Parastatals Pension Department receiving the largest portion.
The payment comes amid ongoing protests by pensioners over outstanding entitlements and coincides with President Tinubu’s recent approval of major pension reforms, including higher rates, harmonisation, and health insurance coverage for DBS pensioners.
The reforms aim to address long-standing arrears and improve retirees’ welfare in line with the Renewed Hope Agenda.
