Decades of Waiting End as FG Pays N39.6bn Pension Arrears to NITEL, PHCN, NICON Retirees

Thousands of retired federal workers have received long-awaited relief following the Federal Government’s disbursement of N39.6 billion to settle the outstanding 10.6 per cent pension increase arrears for retirees under the Defined Benefit Scheme.

The payment, made through the Pension Transitional Arrangement Directorate (PTAD), benefits about 24,000 pensioners, including former employees of defunct public enterprises such as NITEL/MTEL, PHCN and NICON, whose pension arrears had remained unpaid for years.

The disbursement has been welcomed by the Nigeria Union of Pensioners (NUP).
Speaking during a national television interview, the National President of the union, Godwin Abumisi, commended President Bola Ahmed Tinubu for the payment of the arrears and other interventions aimed at improving the welfare of pensioners.
“We are happy with President Bola Ahmed Tinubu. No President has ever been kind to pensioners like President Bola Tinubu. He didn’t just pay our arrears of many years, he also paid the 10.6 per cent increase on our pensions,” Abumisi said.

The payment is part of the Federal Government’s ongoing settlement of outstanding pension obligations.
The government has also released N758 billion to clear accrued liabilities under the Contributory Pension Scheme (CPS) and N58 billion for obligations under the Defined Benefit Scheme (DBS).

Many of the beneficiaries had waited for years for the implementation of the 10.6 per cent pension increase. The latest payment covers retirees from several defunct government agencies and parastatals under the Defined Benefit Scheme.

The development has been received with excitement by pensioners, many of whom described it as a welcome intervention after years of uncertainty over their outstanding entitlements.

The payment is one of the recent measures by the Federal Government aimed at addressing outstanding pension liabilities and improving the welfare of retired public servants.