Pensioners across Nigeria have lauded President Bola Tinubu following the Federal Government’s approval and commencement of payment of N39.6bn in arrears arising from a 10.6 per cent pension increase for retirees under the Defined Benefit Scheme.

The National President of the Nigeria Union of Pensioners, Godwin Abumisi, described the move as a major relief for thousands of elderly citizens who had waited years for the adjustment to be implemented. Speaking after the Pension Transitional Arrangement Directorate and the Ministry of Finance confirmed the disbursement, Abumisi said the decision had restored confidence among retirees.

According to him, the latest payment is part of a broader package of interventions targeted at clearing inherited pension liabilities. He noted that the Tinubu administration had also released N758bn to settle arrears of pension and gratuity owed to retirees under the Contributory Pension Scheme, as well as N58bn for outstanding benefits due to pensioners on the Defined Benefit Scheme.

Abumisi said the union had observed a marked improvement in the regularity of monthly pension payments since the current administration assumed office, adding that many of the delays and bureaucratic bottlenecks that once defined pension administration had eased.

The N39.6bn now being disbursed covers long-standing arrears of the 10.6 per cent pension increase approved for federal pensioners. PTAD explained that the funds are going to retirees of several defunct public institutions, including Nigerian Telecommunications Limited and its mobile arm, NITEL/MTEL, the Power Holding Company of Nigeria, Assurance Bank, NICON and the defunct People’s Bank of Nigeria.

Breakdown of the payments released by PTAD shows that N25.05bn is being used to clear 35 months of pension liabilities owed to 9,675 eligible NITEL/MTEL pensioners. A further N9.48bn represents an initial 50 per cent payment of Back End Computation arrears to 3,959 PHCN pensioners, while N5.09bn is earmarked for the balance of pension increment arrears due to 11,180 retirees from Assurance Bank, NICON, NITEL and People’s Bank.

Abumisi urged pensioners to remain engaged with the union as it continues to press for the settlement of remaining obligations and for further improvements in welfare, healthcare access and social protection for older Nigerians.