FG Pays ₦5.12bn Pension Arrears to Over 90,000 Retirees, Unveils New Welfare Measures for Pensioners
Story: Written by Myra Chinoso August 12,2025
The Federal Government has provided major relief to pensioners by disbursing ₦5.12 billion in arrears to 90,689 retirees under the Defined Benefit Scheme (DBS).
The Pension Transitional Arrangement Directorate (PTAD) confirmed in a statement on Monday, August 11, that the payments covered retirees across its four pension departments.
Olugbenga Ajayi, PTAD’s Head of Corporate Communications, said the move underscores the government’s commitment to clearing outstanding pension liabilities.
“In line with its pledge to settle all outstanding entitlements as funds are made available, PTAD has completed the disbursement of ₦5,119,328,000 to 90,689 pensioners, reaffirming its dedication to pensioners’ welfare,” Ajayi stated.
Breakdown of Disbursements:
- Customs, Immigration, and Prisons Pension Department (CIPPD): ₦276,032,000 to 8,626 pensioners.
- Police Pension Department: ₦619,584,000 to 9,681 pensioners.
- Civil Service Pension Department: ₦408,736,000 to 12,773 retirees.
- Parastatals Pension Department: ₦3,814,976,000 to 59,609 retirees.
The payment coincided with protests by members of the Nigerian Union of Pensioners, who accused the government of owing them up to 35 months in arrears and failing to pay a ₦35,000 palliative. The protesters included retirees from defunct agencies such as NITEL, the Federal Radio Corporation of Nigeria (FRCN), and the Nigerian Railway Corporation (NRC).
On August 9, 2025, President Bola Tinubu approved a series of welfare measures for DBS pensioners, including:
- An extra budgetary allocation for new pension rates.
- Adoption of a pension harmonisation policy to be included in the 2026 budget.
- Health insurance coverage for all DBS pensioners.
- Settlement of unpaid liabilities for retirees from defunct parastatals, including NITEL/MTEL.
PTAD noted that these reforms build on earlier efforts, such as the settlement of arrears from the first pension increment of 20% to 28% implemented in January 2024.
Earlier this year, the Federal Government also approved a ₦758 billion pension bond to clear all outstanding liabilities under the Contributory Pension Scheme (CPS), with disbursement expected within three months.
