FG clears N18.96bn PHCN pension arrears for 3,958 retirees

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By Victor Ahiuma-Young

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The Federal Government, through the Pension Transitional Arrangement Directorate, PTAD, has completed the payment of N18.96 billion in outstanding pension arrears to 3,958 former employees of the Power Holding Company of Nigeria, PHCN, under the Defined Benefit Pension Scheme, DBS.

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According to a statement by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, dated September 17, 2026, the latest payment, amounting to N9.48 billion, represents the outstanding 50 per cent balance of arrears arising from the Back-End Computation, BEC.

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“The payment follows an earlier disbursement of N9.48 billion made in June 2026 to the same group of pensioners as the first 50 per cent tranche.

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“With the latest disbursement, PTAD said the BEC arrears owed to the affected PHCN pensioners had been fully settled, bringing the total amount paid to N18,958,199,952.27. The development marks the completion of a major outstanding pension liability involving thousands of retired workers.

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“PTAD has successfully disbursed the sum of N9,476,313,375.74 to 3,958 eligible PHCN Pensioners under the Defined Benefit Pension Scheme (DBS), representing the outstanding 50 percent balance of arrears arising from the Back-End Computation (BEC),” the Directorate said.

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The agency explained that the latest payment followed the N9,481,886,576.53 disbursed in June 2026, representing the first 50 per cent tranche of the BEC arrears.

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“With this payment, the Directorate has fully settled the BEC arrears owed to the affected PHCN Pensioners, bringing the total amount disbursed to N18,958,199,952.27,” PTAD stated.

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The Directorate described the full settlement as a significant milestone in resolving outstanding pension liabilities and reaffirmed the Federal Government’s commitment to protecting the welfare and entitlements of pensioners under the DBS.

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Quoting the Executive Secretary of PTAD, Tolulope Odunaiya, the statement said the Directorate remained committed to ensuring that every eligible pensioner received all legitimate entitlements due to them.

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Odunaiya also highlighted the commitment of the administration of President Bola Tinubu to the welfare, dignity and well-being of DBS pensioners, saying the government, through PTAD, was addressing outstanding pension liabilities and ensuring that retirees who served the nation received their benefits.

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According to the Executive Secretary, the years of sacrifice and service rendered by Nigeria’s senior citizens would continue to be recognised and honoured as the administration pursued initiatives aimed at protecting their welfare and promoting a more dignified and secure retirement.

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The latest payment brings to an end the BEC arrears covered by the exercise for the 3,958 affected PHCN pensioners, according to PTAD.

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