President Bola Tinubu has approved sweeping measures to enhance the welfare of pensioners under the Defined Benefit Scheme (DBS).
The Head of Corporate Communications at the Pension Transitional Arrangement Directorate (PTAD), Olugbenga Ajayi, confirmed that the decision marks a major milestone in Nigeria’s pension reform journey.
PTAD had earlier cleared arrears from the first pension increment of 20% to 28%, implemented in January 2024.
Under the President’s Renewed Hope Agenda, the government will immediately release an extra budgetary allocation to fund new pension rates for DBS pensioners.
Tinubu also authorised the adoption of a proposed pension harmonisation policy for inclusion in the 2026 pension budget. Additionally, he approved health insurance coverage for all DBS pensioners, guaranteeing access to essential healthcare services.
“This action demonstrates President Tinubu’s firm commitment to the welfare of senior citizens and ushers in a new era in DBS pension management,” said PTAD Executive Secretary, Tolulope Odunaiya.
The President’s directive also addressed outstanding liabilities owed to NITEL/MTEL pensioners and other retirees from defunct parastatals, which will feature in the 2026 budget proposal.
Odunaiya had earlier appealed to the Presidency for emergency budgetary allocations to implement crucial pension reforms. These reforms include a new pension rate of ₦32,000 and incremental increases of 10.66% and 12.95% for pensioners from defunct and privatised agencies. The package also covers harmonisation of pension rates across all DBS pensioners and enrolment into the National Health Insurance Scheme (NHIS).
“We appreciate the President’s leadership in placing retirees’ welfare at the forefront. This is a transformative moment for pension administration in Nigeria,” Odunaiya added.
In June, PTAD disbursed ₦8.6 billion in pension arrears to 148,625 eligible DBS pensioners across various sectors, reflecting the ₦32,000 pension increment approved in 2024. The disbursements included:
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₦5.7 billion to 59,342 pensioners in the Parastatals Pensions Department (PaPD)
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₦2.3 billion to 71,084 pensioners in the Civil Service Pensions Department (CSPD)
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₦310 million to 9,579 pensioners in the Police Pension Department (PPD)
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₦276 million to 8,620 pensioners in the Customs, Immigration and Correctional Service Pension Department