The Federal Government of Nigeria has taken a decisive step toward resolving long-standing pension liabilities by releasing a substantial sum of N5.12 billion as arrears payments to 90,689 pensioners registered under the Defined Benefit Scheme (DBS).
These payments were made through the Pension Transitional Arrangement Directorate (PTAD), the agency responsible for managing pension matters relating to public servants who retired before the introduction of the Contributory Pension Scheme.
This move demonstrates the government’s ongoing dedication to fulfilling its obligations and restoring confidence among pensioners across the country.
In a statement issued on Monday in Abuja, Mr. Olugbenga Ajayi, the Head of Corporate Communications at PTAD, confirmed that the directorate has successfully concluded the disbursement process of the pension arrears.
He emphasized that the payment reflects the Federal Government’s unwavering commitment to pensioners’ welfare, ensuring that retired public servants receive the financial support they are rightfully entitled to.
According to Ajayi, the smooth execution of this payment process also highlights the efficiency and transparency PTAD has brought to the management of pension funds.
The payments were distributed among pensioners from the four key pension departments under PTAD, covering arrears owed over one or two months depending on the department. Specifically, pensioners from the Nigeria Customs Service, Nigeria Immigration Service, and the Prisons Pension Department (collectively referred to as CIPPD) received payments for one month of arrears.
A total of 8,626 pensioners in this group were each paid N276,032, ensuring that their previously delayed entitlements were settled.
The Police Pension Department (PPD) pensioners, who number 9,681, were paid for two months of arrears. Each pensioner in this category received N619,584, reflecting the government’s effort to clear multiple months of outstanding payments and alleviate financial hardships faced by former police officers.
Meanwhile, 12,773 pensioners from the Civil Service Pension Department (CSPD) were also paid arrears for one month. Each CSPD pensioner received N408,736, demonstrating the government’s prioritization of regularizing payments to this category of retirees who have served in various civil service roles across the country.
The largest group of beneficiaries comes from the Parastatals Pension Department (PAPD), consisting of 59,609 pensioners. These individuals received payments covering two months of arrears, with each pensioner being paid N3,814,976.
This substantial disbursement reflects the government’s commitment to ensuring that pensioners from parastatal organizations, which include a wide range of government-owned corporations and agencies, are not left behind in the effort to settle outstanding pension obligations.
Mr. Ajayi further stated that the disbursement of this substantial pension fund is in line with the administration’s broader Renewed Hope Agenda spearheaded by President Bola Tinubu.
The agenda focuses on restoring hope and dignity to Nigerians, particularly vulnerable groups such as pensioners who depend on timely payments for their livelihood. By addressing pension arrears, the government is making strides in improving the social welfare of retirees and reinforcing the principle that public servants deserve respect and financial security after years of service to the nation.
The Federal Government’s action to clear these arrears is expected to have a positive impact on the lives of thousands of pensioners, providing them with much-needed financial relief and enabling them to meet their daily needs and obligations. It also signals to other stakeholders the government’s resolve to uphold the rights of pensioners and sustain a pension system that is both reliable and accountable.
In conclusion, the successful disbursement of N5.12 billion in pension arrears to nearly ninety-one thousand DBS pensioners marks a major milestone in Nigeria’s pension reform journey. It demonstrates the Federal Government’s ongoing resolve to resolve pension challenges, enhance pensioners’ welfare, and build a more sustainable pension framework for future generations.