President Bola Tinubu has approved a comprehensive package of reforms designed to improve the welfare of pensioners under the Defined Benefit Scheme (DBS), signaling a renewed focus on Nigeria’s aging population and their entitlements.
In a statement released by the Pension Transitional Arrangement Directorate (PTAD), the agency confirmed that the measures are in line with the administration’s Renewed Hope Agenda, and reflect the President’s commitment to enhancing the quality of life for retired public sector workers.
According to PTAD’s Head of Corporate Communications, Olugbenga Ajayi, the new approvals include:
- Immediate implementation of extra-budgetary allocations to accommodate the newly approved pension rates for DBS pensioners.
- Full adoption of a pension harmonisation policy, to be reflected in the 2026 national budget.
- Health insurance coverage for all DBS pensioners under the National Health Insurance Scheme (NHIS), ensuring access to essential healthcare services.
“These reforms represent a significant turning point in pension administration,” said PTAD Executive Secretary, Tolulope Odunaiya. “They reflect the President’s clear commitment to supporting Nigeria’s senior citizens who gave their years to building the nation.”
Key Pension Reforms and Approvals
The President’s directive also addresses long-standing arrears and unpaid liabilities, particularly for retirees from defunct government-owned enterprises such as NITEL/MTEL. These liabilities have now been included in the proposed 2026 budget.
Other highlights of the approved reforms include:
- A new minimum pension rate of ₦32,000, representing an upward adjustment to the existing structure.
- Additional incremental increases of 10.66% and 12.95% for pensioners from privatised and defunct agencies.
- Standardisation (harmonisation) of pension rates across all DBS pensioners, eliminating existing disparities.
The reforms follow a formal request submitted to the Presidency by PTAD’s Executive Secretary, urging emergency budgetary intervention to fast-track the implementation of key pension measures.
Earlier Settlements and Disbursements
PTAD also noted that it had previously cleared arrears linked to the initial pension increment from 20% to 28%, which took effect in January 2024. This was part of a phased reform process aimed at stabilising pension disbursements and closing historical gaps.
In June 2025, PTAD disbursed ₦8.6 billion in pension arrears to over 148,000 eligible retirees under the DBS framework. The breakdown of the payments is as follows:
- ₦5.7 billion to 59,342 pensioners under the Parastatals Pensions Department (PaPD)
- ₦2.3 billion to 71,084 retirees from the Civil Service Pensions Department (CSPD)
- ₦310 million to 9,579 pensioners in the Police Pension Department (PPD)
- ₦276 million to 8,620 retirees from the Customs, Immigration, and Correctional Services Pension Department
Ajayi noted that these payments were made following the official approval of the ₦32,000 minimum pension rate by President Tinubu in early 2024.
Odunaiya described the President’s latest directive as a “transformative moment” for pension management in Nigeria.
“Beyond the figures, this is about restoring dignity to our retirees and ensuring they are not left behind in the nation’s progress,” she said.
