By Isaac Atunlute
Nigeria’s retirees, particularly those under the old Defined Benefit Scheme, have suffered quietly for many years. They have spent decades working for their country only to receive in return late pensions, inadequate payment, and financial insecurity in their retirement phase.
However, a recent move by the federal government is pointing towards a change. Earlier this week, the Pension Transitional Arrangement Directorate (PTAD) announced the disbursement of N8.6 billion pension arrears to 148,625 pensioners, as part of the implementation of the N32,000 monthly pension increase that was approved by President Bola Tinubu in 2024.
The directorate said it had since cleared the arrears of the first increment of 20/28% approved by the President, which was implemented from January 2024.
The step is seen as a practical stride towards restoring the stability and the dignity of retired government servants.
Payment breakdown reveals that N5.7bn was disbursed to 59,342 eligible pensioners under parastatals pensions department, and N2.3bn went to 71,084 retired civil servants under the civil service pension department.
Additionally, the police pension department paid N310m to 9,579 retirees and N276m was also disbursed to 8,620 pensioners from the Customs, Immigration, and Prisons pension department.
These funds not only mean financial relief, but they also mean a move towards completely eliminating systemic delays that have plagued Nigeria’s pension administration.
But the true story is in how it was made possible.
PTAD’s enhanced biometric verification, records digitization, and transparency have weeded ghost pensioners out of the rolls, laying the ground for quicker and targeted payment.
Furthermore, changes on the arrears calculation and payment phasing have also restored uniformity to a process previously blighted by uncertainty.
However, there are still problems. While the recent payment wipes away some of the increment arrears, there are other benefits owed that are being anticipated by the pensioners. But the PTAD executive secretary Tolulope Odunaiya believes that this is only the beginning.
“We are determined to pay all arrears and make prompt payments,” she said, reaffirming the government’s commitment through the Renewed Hope Agenda.
Aside from PTAD, the gesture is also a good example for state governments, which also owe pension arrears. Activists hope the federal government’s move will pressure subnational governments to match or exceed the same.
In the background, civil society is also making an important contribution. Initiatives including pensioner helplines, legal support for pensioners, and computer education are helping older citizens adapt to the complicated world of pensions.
Ultimately, it’s not a tale of an N8.6bn payment. It’s of a system gradually demonstrating that it can work, one which repays the sacrifices of its elders and pays dividends with real impact.
Nigeria’s pension reform is far from over, but this landmark gives retirees and the nation as a whole, fresh hope for a more equal future.
Nigeria's retirees, particularly under the old Defined Benefit Scheme, have faced significant challenges receiving timely and sufficient pensions.
Recently, the Pension Transitional Arrangement Directorate (PTAD) announced the distribution of N8.6 billion in pension arrears to 148,625 pensioners, reflecting progress towards addressing pension inadequacies.
This disbursement follows a presidential approval of a N32,000 monthly pension increase starting January 2024, with specific allocations to different departments (parastatals, civil service, police, customs, immigration, and prisons).
PTAD has implemented changes such as enhanced biometric verification and records digitization to eliminate ghost pensioners, leading to more efficient payments.
Although some arrears have been addressed, other owed benefits remain, but PTAD's executive secretary reaffirms the commitment to resolving these issues under the Renewed Hope Agenda.
This federal action sets a positive precedent for state governments to follow, while civil society initiatives also play a role in supporting pensioners.
The current progress signifies a system that is starting to function effectively, restoring dignity to retirees.
While comprehensive pension reform remains a work in progress, this development offers renewed hope for a more equitable future for Nigeria's retirees.
