The Pension Transitional Arrangement Directorate (PTAD) has raised concerns about what it described as inadequate provisions for pension arrears in the 2025 national budget signed into law by President Bola Tinubu.
The concern was raised by PTAD’s Executive Secretary, Ms Tolulope Odunaiya, during a courtesy visit to the Director-General of the Budget Office of the Federation, Mr Tanimu Yakubu, in Abuja.
A statement issued on Friday by PTAD’s Head of Corporate Communications, Mr Olugbenga Ajayi, and which quoted Odunaiya, said the N54.99 trillion 2025 budget does not sufficiently address accumulated pension liabilities, despite its overall increase compared to previous years.
She warned that the omission affects the well-being of retired public servants who rely entirely on pensions.
“Odunaiya noted that shortfalls in budgetary releases directly affect the well-being of pensioners, many of whom depend solely on their pensions for survival,” the statement read.
To address the gap, she recommended the formation of a joint committee comprising PTAD and Budget Office officials to develop measures that ensure pension obligations are met without delay.
“She expressed concern that the 2025 National Budget does not adequately provide for pension arrears, highlighting the urgent need for intervention and support,” the statement added.
In response, the Director-General of the Budget Office, Tanimu Yakubu, agreed to the proposal and formally established the committee. The group is expected to focus on actionable solutions to improve pension disbursement efficiency.
President Tinubu had earlier signed the 2025 Appropriation Act, which raised the national budget from N49.7 trillion to N54.99 trillion.
It allocates N13.64 trillion for recurrent expenditure, N23.96 trillion for capital projects, N14.32 trillion for debt servicing, and N3.65 trillion for statutory transfers.
The plan projects a deficit of N13.08 trillion to be financed through a mix of domestic and external borrowing.
Key budget assumptions include a crude oil benchmark of \$75 per barrel, daily oil production at 2.06 million barrels, an average exchange rate of N1,400 to the dollar, and an inflation target of 15 per cent.
To address existing pension arrears, the Federal Executive Council had earlier approved the issuance of a N758 billion bond, intended to cover accrued rights and pension increases.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the approval authorised the Debt Management Office to raise the required funds.
The National Pension Commission has stated that the funds are expected to benefit university professors, low-income workers, and others affected by longstanding pension shortfalls.
