In one of the largest single-month pension interventions in recent years, the Pension Transitional Arrangement Directorate (PTAD) has disbursed N55.9 billion as monthly pensions and outstanding arrears to retirees and next-of-kin under the Defined Benefits Scheme (DBS), marking a major milestone in the Federal Government’s pension reform efforts.
According to a statement signed by Head of Corporate Communications at PTAD, Olugbenga Ajayi, the December 2025 payment, which covered N13.41 billion in monthly pensions and N42.5 billion in accumulated arrears, underscores the government’s renewed drive to restore credibility to the DBS segment of Nigeria’s pension system, long plagued by funding gaps, verification challenges, and delayed entitlements.
PTAD said the arrears settled include liabilities arising from the N32,000 pension increment, alongside the 10.66 per cent and 12.95 per cent pension increases, as well as outstanding gratuities and death benefits owed to eligible beneficiaries across multiple pension departments.
A detailed breakdown shows that civil service retirees accounted for the largest share, with the Civil Service Pension Department receiving N16.36 billion for over 71,000 pensioners, reflecting the scale of legacy pension obligations inherited by the government. Significant payments were also made to pensioners from defunct and transferred agencies, parastatals, tertiary institutions, and uniformed services.
PTAD disclosed that arrears linked to the N32,000 increment have now been fully cleared across all pension departments, except for one month outstanding each for pensioners in the Parastatals Pension Department and the Tertiary Education and Health Department, which the Directorate says will be settled shortly.
Beyond the immediate financial relief, the payments are being viewed by policy analysts as part of a broader pension reform agenda aimed at stabilising the DBS, which predates the Contributory Pension Scheme (CPS) introduced in 2004. While the CPS operates on individual retirement savings accounts managed by pension fund administrators, the DBS remains fully funded by the Federal Government and covers retirees from the pre-reform era.
Speaking on the development, PTAD’s Executive Secretary, Tolulope Odunaiya, said the payments reflect President Bola Ahmed Tinubu’s commitment to senior citizens, aligning with the administration’s Renewed Hope Agenda, which prioritises social protection, fiscal discipline, and institutional reform.
She reaffirmed PTAD’s commitment to eliminating residual arrears and strengthening transparency through continuous verification exercises, digital payment systems, and improved pensioner data management—measures experts say are critical to preventing the re-accumulation of arrears.
Stakeholders note that sustained funding of DBS obligations remains a fiscal challenge, especially amid rising public debt and competing social demands. However, they argue that regular and predictable pension payments are essential not only for retirees’ welfare but also for rebuilding public trust in government social obligations.
