The Federal Government has disbursed N8.6 billion in pension arrears to 148,625 retirees under the Defined Benefit Scheme (DBS), as part of the implementation of the N32,000 pension increment approved by President Bola Tinubu in 2024.
This was disclosed in a statement on Monday by Olugbenga Ajayi, Head of Corporate Communications at the Pension Transitional Arrangement Directorate (PTAD). The payments covered pensioners from key sectors including the Police, Civil Service, Parastatals, Customs, Immigration, and Prisons.
Ajayi noted that the latest payment follows the earlier settlement of arrears tied to the 20%–28% increment that took effect in January 2024.
A detailed breakdown of the disbursement shows:
N5.7 billion to 59,342 pensioners under the Parastatals Pension Department (PaPD)
N2.3 billion to 71,084 pensioners in the Civil Service Pension Department (CSPD)
N310 million to 9,579 retirees from the Police Pension Department (PPD)
N276 million to 8,620 pensioners in the Customs, Immigration, and Correctional Service Pension Department
PTAD’s Executive Secretary, Tolulope Odunaiya, reaffirmed the government’s commitment to fully offset the outstanding balance of the increment. “This is another step in ensuring our pensioners receive their rightful entitlements under the Renewed Hope Agenda,” she said.
She added that the Federal Government will continue to roll out reforms and initiatives aimed at improving the welfare and financial security of retirees.
Meanwhile, the Nigerian pension industry continues to demonstrate resilience and growth. According to the National Pension Commission (PenCom), total pension assets reached N23.32 trillion in March 2025—up 0.27% from N23.26 trillion in February. The modest uptick was driven by strategic diversification and prudent investment decisions by pension fund administrators.
In a related development, the National Insurance Commission (NAICOM) recently announced plans to introduce new guidelines to safeguard Retiree Life Annuity (RLA) assets and address emerging cyber risks.
According to Moruf Apampa, Vice Chairman of the Publicity Sub-Committee of the Insurers’ Committee, the initiative is part of broader efforts to enhance pension fund security. “The new framework will provide stronger protection for pensioners while reinforcing confidence in the annuity system,” Apampa said after the June 2025 Insurers’ Committee meeting in Lagos.
The series of actions signals a broader government commitment to pension sector reform, anchored on transparency, efficient fund management, and the long-term financial security of retirees across Nigeria.
