Nigeria’s government has cleared more than 39.6bn naira (£18m/$23m) in outstanding pension arrears owed to thousands of retired public sector workers.

The Pension Transitional Arrangement Directorate (PTAD) said the move settles decades-long liabilities inherited from defunct state-owned enterprises, including the former national telecoms provider NITEL.

The payouts follow a presidential directive issued in August 2025, with funds formally allocated in the 2026 budget.

For years, thousands of Nigerian senior citizens have faced severe financial hardship due to delayed or unpaid entitlements after their former employers were privatised or liquidated.

Key Payouts at a Glance

The funds have been distributed across three main categories of retirees under the government’s Defined Benefit Scheme (DBS):

• NITEL/Mtel: N25bn (£11.6m) paid to 9,675 retirees, covering 35 months of outstanding liabilities.
• Power Holding Company of Nigeria (PHCN): N9.4bn paid to 3,959 retirees as an initial 50% instalment of backend computation arrears.
• Defunct Banks & Parastatals: N5bn paid to 11,180 retirees from Assurance Bank, NICON, and People’s Bank of Nigeria, completing a 50% balance on previous pension increments.

‘Lasting Relief’

PTAD’s Executive Secretary, Tolulope Odunaiya, said the clearance of the debts would bring “lasting relief” to thousands of households.

“The successful liquidation of these liabilities underscores the federal government’s resolve to sustain pension reforms and ensure that pensioners receive their rightful entitlements,” Ms. Odunaiya said in a statement.

The directorate also praised the patience of the affected retirees, many of whom have spent years campaigning for their pensions to be paid.

The administration of President Bola Tinubu, which took office in 2023, has been under intense pressure to reform the country’s struggling economy and cushion the impact of rising inflation on vulnerable citizens. Officials say the pension clearance is part of a broader “Renewed Hope” social protection agenda aimed at restoring confidence in public institutions.