The Federal Government has commenced payment of new pension increments to retirees under the Defined Benefit Scheme (DBS), following the release of ₦820.188 billion from emergency funding approved by President Bola Tinubu.

The Pension Transitional Arrangement Directorate (PTAD), in a statement posted on its official X handle on Tuesday, said the adjustments would take effect from the September 2025 payroll cycle.

According to the statement, the increment covers a fixed ₦32,000 payment alongside percentage increases of 10.66% and 12.95% for different categories of retirees. About 832,000 pensioners are expected to benefit.

“Further to the President’s approval of the emergency budgetary allocation for the payment of the new pension increment rates for Pensioners under the Defined Benefit Pension Scheme (DBS) that was earlier published by the Pension Transitional Arrangement Directorate on Friday, 8th August, 2025, the Directorate is delighted to announce the commencement of the implementation of the 832,000, 10.66% and 12.95% pension increment for eligible pensioners under the management of PTAD, in the September 2025 pension payroll cycle,” the statement read.
PTAD explained that the funds were part of an initial ₦845 billion emergency allocation granted by the Federal Government to implement pension reforms.

It said the move “clearly reaffirms the Federal Government’s dedication to safeguarding the welfare and entitlements of DBS Pensioners in line with the Renewed Hope Agenda.”
The directorate thanked President Tinubu for approving the funding and acknowledged the role of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of State for Finance, Doris Uzoka-Anite, and the Accountant-General of the Federation.
It also praised relevant parliamentary committees and presidential aides for what it called “timely interventions.”
PTAD further commended pension groups, including the Nigeria Union of Pensioners and the Federal Parastatals and Private Sector Pensioners Association of Nigeria, for their cooperation during negotiations.

“We further assure all our DBS Pensioners and Stakeholders that the Directorate will continue to collaborate with the relevant authorities towards release of the outstanding approved funds and subsequent fulfilment of all future obligations relating to the pension increments and the landmark reforms,” it added.

The DBS covers public service retirees who left service before the introduction of the Contributory Pension Scheme in 2004, including those from defunct institutions, privatised agencies, and treasury-funded parastatals. Many have long faced irregular payments, delayed harmonisation, and poor access to healthcare—issues the new reforms are intended to address.