FG Disburses N39.6bn to Settle Pension Arrears for Thousands of Retirees

The Federal Government has paid N39.6 billion to clear long-standing pension liabilities under the Defined Benefit Scheme. The funds settled legacy obligations owed to retirees of defunct government enterprises and financial institutions. N25.05 billion covered 35 months of arrears for 9,675 former NITEL and MTEL staff. A further N9.48 billion represented the first half of Back End Computation arrears for 3,959 Power Holding Company pensioners. Another N5.09 billion went to increment shortfalls for 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank. Presidential approval was granted in August 2025, with funds provided through the 2026 Appropriation Act. The payment fully clears inherited Defined Benefit Scheme liabilities and restores dignity to affected pensioners. The Minister of Finance described the move as proof of the government’s commitment to fiscal responsibility and pledged ongoing reforms to strengthen pension administration and public financial management.

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