The federal government has cleared N39.6 billion in longstanding pension arrears, bringing relief to thousands of retirees under the defined benefit scheme.

The development was announced in a statement issued by Efe Ovuakporie, head of information and public relations at the Federal Ministry of Finance, on Friday in Abuja.

Mr Ovuakporie stated that this was disclosed during a briefing when the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, received the executive secretary of the Pension Transitional Arrangement Directorate, Tolulope Odunaiya.

Ms Odunaiya said the payments covered inherited pension liabilities owed to retirees of defunct public enterprises and financial institutions. She said N25.05 billion settled 35-month pension arrears owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.

According to the PTAD boss, N9.48 billion represents the first 50 per cent payment of arrears from the backend computation for 3,959 eligible PHCN pensioners.

She added that N5.09 billion cleared the balance of pension increment arrears owed to 11,180 retirees of Assurance Bank, NICON, NITEL and People’s Bank.

She said presidential approval was granted in August 2025, while funding was provided under the 2026 Appropriation Act.

Ms Odunaiya said the payments had cleared all inherited pension liabilities under the DBS, bringing long-awaited relief to affected pensioners.

Mr Oyedele commended PTAD for successfully executing the exercise, describing it as evidence of the government’s commitment to responsible fiscal management.

He said the payments restored confidence and dignity to pensioners while reaffirming the government’s resolve to honour its obligations sustainably.

He reiterated his continued support for reforms that strengthen public financial management and improve pension administration nationwide.

Mr Oyedele said the exercise aligned with President Bola Tinubu’s Renewed Hope Agenda, which aims to improve pensioners’ welfare and boost public confidence.

(NAN)