FG Clears N8.6b Pension Arrears Pledges N32,000 Increment

The Federal Government has released N8.6 billion to clear pension arrears for 148,625 retirees under the Defined Benefit Scheme (DBS), as part of efforts to execute the N32,000 pension increase approved by President Bola Tinubu in 2024.

In a statement on Monday, Olugbenga Ajayi, Head of Corporate Communications at the Pension Transitional Arrangement Directorate (PTAD), confirmed the disbursement.

The payment benefits retirees from various sectors, including the Civil Service, Parastatals, Police, Customs, Immigration, and Prisons Pension Departments. PTAD had earlier completed payments in the first phase of the increment, which increased pensions by 20 to 28 per cent starting January 2024.

A total of N5.7 billion was disbursed to 59,342 qualified pensioners under the Parastatals’ Pensions Department. Another N2.3 billion was paid to 71,084 eligible retirees under the Civil Service Pension Department. The Police Pension Department accounted for N310 million, which was distributed to 9,579 pensioners, while N276 million was allocated to 8,620 beneficiaries under the Customs, Immigration, and now Correctional Service Pension Department.

Announcing the disbursement, the Executive Secretary of PTAD, Tolulope A. Odunaiya, reiterated “the Federal Government’s commitment towards the full settlement of the outstanding balance accruing from the increment.”

She also emphasized “the unflinching determination of the Federal Government to proceed with its programmes aimed at improving the welfare of pensioners in line with President Tinubu’s Renewed Hope Agenda.”