Nigeria’s pension agency has released 13.8 billion naira ($9m) in back pay to thousands of public sector retirees, resolving years of overdue pension increases for former employees of defunct state-owned enterprises.
The Pension Transitional Arrangement Directorate (PTAD), which oversees benefits for workers under the country’s legacy defined-benefit system, announced on Sunday that the funds had been distributed to 18,822 retirees.
The payments cover accumulated arrears stemming from two separate pension increases of 13.8% and 20.55%, approved following a review by the country’s national pay and wages commission.
The largest portion of the release—9.4 billion naira—was paid to 7,391 former employees of the state power utility, the Power Holding Company of Nigeria (PHCN). The disbursement covers 65 months of outstanding arrears for the 13.8% increase, dating back to June 2021.
A further 4.4 billion naira was shared among 11,431 retirees from five other liquidated state institutions, including the national telecommunications provider NITEL, its mobile subsidiary MTEL, and several state insurance and banking firms. These payments cover 22 months of arrears under the 20.55% increase rate.
Olugbenga Ajayi, head of corporate communications at PTAD, said the disbursements aligned with government efforts under President Bola Tinubu to address long-standing delays in public sector welfare payments.
”The Federal Government remains determined to ensure that pensioners receive their entitlements promptly and with dignity,” Ajayi said in a statement.
Nigeria transitioned away from its traditional government-funded pension scheme in 2004, introducing a contributory system for newer employees. However, PTAD continues to manage payments for older public servants who retired under the legacy framework or were affected by the privatization and liquidation of state institutions during economic reforms over the past two decades.
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