A breakdown of the payments shows that ₦25.05 billion was allocated to settle a 35-month pension liability owed to 9,675 eligible NITEL and MTEL pensioners
KaNo —
The Nigeria Union of Pensioners has commended President Bola Tinubu following the approval and disbursement of ₦39.6 billion in pension arrears.
The National President of the union, Godwin Abumisi, gave the commendation during an interview with TVC News shortly after the announcement of the payment by the Pension Transitional Arrangement Directorate in collaboration with the Federal Ministry of Finance on Friday.
Abumisi said the payment, which represents the 10.6 per cent pension increase arrears owed to retirees under the Defined Benefit Scheme, reflects the administration’s commitment to addressing long-standing pension liabilities and restoring confidence among citizens.
According to him, the latest disbursement has reinforced pensioners’ trust in the government’s willingness to prioritise their welfare.
“We are very happy with the present government. No president in Nigeria has achieved as much as His Excellency, Bola Tinubu, President of the Federal Republic of Nigeria. No other president has done as much as he has,” Abumisi said.
He listed several interventions he attributed to the current administration, including the release of ₦758 billion to clear arrears of pension and gratuities owed to retirees under the Contributory Pension Scheme, managed by the National Pension Commission.
“He has released funds to pay 10.6 per cent arrears of pension increase, amounting to ₦39.6 billion. He also made available the sum of ₦758 billion for arrears of pension and gratuity for PENCOM, for contributory pensioners. And he provided ₦58 billion for the payment of pension arrears for those on the Defined Benefit Scheme,” he said.
The pensioners’ leader added that these interventions collectively signal a renewed commitment by the Federal Government to address challenges that have historically plagued pension administration in Nigeria, including delays in payments and the accumulation of arrears.
He expressed optimism that the administration would sustain the momentum and implement additional measures to further improve the welfare of retirees.
“So we are congratulating him, we are thanking him, and we are appreciating all that he is doing for pensioners in Nigeria. We are hopeful he will do even more for us,” Abumisi added.
Responding to questions on whether the recent developments had boosted pensioners’ confidence in the government, Abumisi said the administration had demonstrated consistency in the payment of monthly pensions since assuming office.
“This government is very much committed to the welfare of older citizens in Nigeria. We also know he has plans in place for the regular payment of monthly pensions,” he said.
“Since he took office, Nigerian pensioners and older citizens have been paid their pensions regularly. We no longer have the problems we used to have. So I thank him, on behalf of all pensioners in Nigeria, for what he has done, and we expect him to do even more,” he added.
Abumisi also urged pensioners across the country to remain supportive of the administration and to back the President’s re-election bid in the 2027 general election, arguing that continuity would enable further reforms in the pension sector.
“My advice is that we should be loyal to this government, because no other government has done as much as he has. We should support his bid to return to office and ensure he comes back in 2027,” he said.
Meanwhile, the Federal Government confirmed that the ₦39.6 billion payment forms part of a broader settlement of inherited pension liabilities owed to retirees of several defunct and privatised public enterprises.
According to PTAD, the disbursement covers pensioners of organisations such as the defunct Nigerian Telecommunications Limited and Mobile Telecommunications Limited, as well as the Power Holding Company of Nigeria, Assurance Bank, NICON, and the defunct People’s Bank of Nigeria.
A breakdown of the payments shows that ₦25.05 billion was allocated to settle a 35-month pension liability owed to 9,675 eligible NITEL and MTEL pensioners.
In addition, ₦5.09 billion was used to clear the balance of pension increment arrears, including the 10.66 per cent and 12.95 per cent increases due to 11,180 pensioners from Assurance Bank, NICON, NITEL, and the defunct People’s Bank.
The development comes amid broader pension reforms being implemented by the Tinubu administration, which have drawn commendation from stakeholders in the sector.
NUP Celebrates Tinubu At 74
The Nigeria Union Of Pensioners had earlier celebrated President’s 74th birthday, citing what it described as “purposeful interventions” aimed at improving the welfare and dignity of retirees.
Abumisi said pensioners were celebrating not only the President’s new age but also the impact of recent reforms that have helped address longstanding structural challenges in the pension system.
“Pensioners across the country proudly join millions of Nigerians in celebrating you today, particularly in recognition of your administration’s deliberate and impactful interventions aimed at improving the welfare and dignity of retirees,” he said.
He highlighted the approval of a ₦32,000 monthly pension increase as a key measure that has provided relief to retirees facing rising living costs and inflationary pressures.
According to him, the increment reflects a compassionate approach to governance and a recognition of the economic realities confronting fixed-income earners.
Abumisi further commended the Federal Government for approving about ₦700 billion to clear outstanding liabilities under the Contributory Pension Scheme, alongside ₦57 billion for retirees under the Defined Benefit Scheme, describing the intervention as unprecedented.
“These interventions are addressing the backlog of accrued rights owed to CPS retirees, many of whom endured years of uncertainty and hardship after meritorious service,” he said.
Nigeria operates a dual pension structure comprising the Contributory Pension Scheme, introduced in 2004, and the older Defined Benefit Scheme.
While the CPS was designed to ensure sustainability and reduce government liabilities, implementation challenges and funding gaps have continued to affect retirees over the years.
Despite these challenges, Abumisi said recent government actions have begun to reverse the trend by improving payment timelines and reducing arrears.
He also welcomed the approval for the payment of gratuities to retired workers, noting that many had waited for years to receive their entitlements.
“We acknowledge the sustained prompt payment of pensions and your timely interventions in resolving delays, which demonstrate responsive and people-centred leadership,” he added.
Stakeholders say the latest disbursements and policy measures could mark a turning point for Nigeria’s pension system if sustained, particularly as the government seeks to rebuild trust among retirees and ensure financial security for aging citizens.
