PTAD pays N13.87bn pension arrears to 18,822 retirees

The Pension Transitional Arrangement Directorate has disbursed N13.87bn in outstanding pension increment arrears to 18,822 retirees under the Defined Benefit Scheme, covering beneficiaries of the defunct Power Holding Company of Nigeria and five other government-linked organisations.

The payments followed the implementation of pension increases of 13.8 per cent and 20.55 per cent, with some beneficiaries receiving arrears accumulated over more than five years.

This was disclosed in a statement issued on Sunday by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, who explained that the payments covered pension adjustments approved by the National Salaries, Incomes and Wages Commission.

The statement read, “The Pension Transitional Arrangement Directorate has paid N13,873,565,547.52 (Thirteen Billion, Eight Hundred and Seventy-Three Million, Five Hundred and Sixty-Five Thousand, Five Hundred and Forty-Seven Naira, Fifty-Two Kobo) in pension increment arrears to 18,822 Defined Benefit Scheme (DBS) Pensioners.”

A breakdown of the disbursement showed that N9.42bn was paid to 7,391 pensioners of the defunct Power Holding Company of Nigeria, representing arrears arising from a 13.8 per cent pension increase.

The payments covered 65 months, from June 1, 2021, to October 31, 2026, indicating that the affected retirees had accumulated more than five years of outstanding pension adjustments.

The PHCN beneficiaries accounted for approximately 67.9 per cent of the total amount disbursed, despite representing only 39.3 per cent of the pensioners who received payments.

PTAD also paid N4.46bn to 11,431 pensioners from five defunct agencies to settle 22 months of arrears arising from a 20.55 per cent pension increment.

The affected organisations were the Peoples Bank of Nigeria, Assurance Bank, NICON Insurance, Nigerian Reinsurance Corporation and NITEL/MTEL.

The arrears covered January 1, 2025, to October 31, 2026, with the beneficiaries accounting for approximately 32.1 per cent of the total disbursement.

• NAMA pensioners protest unpaid arrears
• Pension aggressive funds deliver 20% returns
• Tinubu cautions pension managers against risky investments

The average payment for pensioners in this category was approximately N389,800, although actual amounts would differ among beneficiaries.

PTAD stated that both pension increases were approved by the National Salaries, Incomes and Wages Commission through a circular dated January 14, 2026.

The directorate described the payments as part of efforts to address outstanding pension obligations and improve the welfare of retirees who served in government establishments.

“These payments are a clear demonstration of the Federal Government’s commitment to the welfare of senior citizens who served this nation diligently,” the statement said.

It added that the government remained committed to ensuring that pensioners under the Defined Benefit Scheme received their approved entitlements.

The Defined Benefit Scheme covers eligible retirees whose pensions are determined under the applicable public service pension arrangements, with PTAD responsible for administering benefits for pensioners under its jurisdiction.

PTAD said the intervention formed part of the Federal Government’s efforts to resolve longstanding pension anomalies and honour outstanding obligations to retirees.

The directorate also pledged to strengthen pension administration, improve payment efficiency, and ensure beneficiaries receive their entitlements without unnecessary delays.

“PTAD remains committed to ensuring efficient pension administration, the timely payment of pension entitlements and the continuous improvement of the welfare of DBS Pensioners,” the statement concluded.