President Bola Tinubu’s administration has paid a total of ₦39.63 billion to 24,814 eligible Defined Benefit Scheme (DBS) pensioners.
The Federal Ministry of Finance confirmed the payment of the inherited pension liabilities in a statement on Friday.
The payment was said to be for outstanding liabilities owed to pensioners of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON Insurance and the defunct People’s Bank of Nigeria.
Speaking on the development, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele said it is a reaffirmation of the federal government’s commitment to improving the welfare of Nigerian pensioners.
The payments were made by the Pension Transitional Arrangement Directorate (PTAD) under the supervision of the Federal Ministry of Finance, on the directive of the Minister to prioritize the payment of verified pension liabilities.
“The payment is an indication of the administration’s commitment to make sure that retired public servants are paid the benefits they labored for over decades of dedicated service,” Oyedele said.
“A nation that prizes service must also pay tribute to those who gave their productive years in its service. This is about people and not just numbers. “It is about restoring confidence, rewarding sacrifice and giving thousands of pensioners and their families the reassurance that they have not been forgotten,” Oyedele was quoted by Head of Information and Public Relations at the Ministry, Efe Ovuakporie, as saying.
“The disbursement covered three categories of outstanding pension obligations that have accumulated over the years,” the Minister said.
It said PTAD paid ₦25,053,703,604.12 to liquidate the outstanding 35-month pension liability due to 9,675 eligible Defined Benefit Scheme pensioners of the defunct NITEL/MTEL.
The Directorate also paid the first 50 per cent of the Back-End Computation (BEC) arrears to 3,959 eligible PHCN Defined Benefit Scheme pensioners in the sum of ₦9,481,886,576.53.
Also, PTAD paid the sum of ₦5,094,784,054.27 being the outstanding 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears due to 11,180 eligible Defined Benefit Scheme pensioners of the defunct Assurance Bank, NICON Insurance, NITEL and Peoples Bank of Nigeria.
“The government is mindful of the actual lives behind each pension payment,” Oyedele said.
“Behind every approved payment,” the Minister said, “there is a retiree who served this country well, a family who has waited patiently, and a story that deserves a happy ending.
“We will continue to support initiatives that improve the lives of our senior citizens while maintaining fiscal discipline and accountability.”
PTAD management and staff were praised for the quick execution of the directive, with the successful disbursement hailed as proof of what can be achieved when institutions work together in the public interest.
“PTAD has acted with professionalism in the execution of this exercise. “The Ministry will continue to provide the necessary policy direction and support to strengthen pension administration and ensure that verified obligations are paid as resources become available,” Oyedele said.
The Director-General, PTAD, Mrs. Tolulope Odunaiya, said the Directorate is committed to the efficient pension administration and thanked the Minister for his leadership and support that enabled the release and prompt disbursement of the funds.