FG Settles N39bn Pension Liabilities for Workers

The Federal Government of Nigeria announced on Friday the payment of N39 billion in inherited pension liabilities, fulfilling President Bola Tinubu's commitment to address longstanding pension debts. The settlement involves payments to eligible pensioners under the defined benefit scheme from defunct organizations such as Nigerian Telecommunications Limited (NITEL), Power Holding Company of Nigeria (PHCN), and several banks including Assur Bank, NICON, and Peoples Bank of Nigeria.

The payment includes N25.05 billion representing 35 months of pension liabilities for 9,675 eligible pensioners from NITEL, N9.48 billion as an initial 50% payment for 3,959 eligible PHCN pensioners, and N5.09 billion covering the balance of pension increment arrears for 11,180 eligible pensioners from the banks. Tolulop Odunaiya, the Executive Secretary of PTAD, described the development as a major milestone in the government's efforts to improve the welfare of pensioners and restore confidence in the pension administration system.