The Pension Transitional Arrangement Directorate (PTAD) has completed the payment of the final one-month arrears linked to the ₦32,000 pension increment for retirees under the Defined Benefit Scheme (DBS), bringing an end to all outstanding obligations under the exercise.
According to a statement issued by PTAD’s Head of Corporate Communications, Olugbenga Ajayi, the latest disbursement marks the full settlement of arrears arising from the pension increase approved to improve the welfare of retirees. A breakdown of the payment shows that pensioners under the Parastatals Pension Department received ₦825.73 million, covering 25,804 beneficiaries. In the same vein, 28,402 retirees under the Tertiary Education and Health Pension Department were paid ₦908.86 million. The payment covers a 13-month arrears window spanning August 2024 to August 2025. With this final phase now concluded, PTAD says all obligations tied to the increment have been fully met.
“With this final payment, all outstanding obligations of the N32,000 pension increment have been fully settled,” Ajayi said. The pension increment was introduced following approval by the National Salaries, Incomes and Wages Commission and took effect from July 29, 2024. It formed part of the Federal Government’s broader efforts to strengthen pension welfare and ease the financial burden on retirees amid rising living costs. PTAD had earlier begun phased payments after receiving partial funding support from the Federal Government.
The process started with the release of ₦20.19 billion for pension adjustments, which included the flat ₦32,000 increase as well as percentage increments of 10.66 per cent and 12.95 per cent for eligible categories of pensioners.These payments were subsequently reflected in the September 2025 payroll cycle, while outstanding arrears continued to be cleared in phases until this final disbursement. The agency also clarified that not all pensioners qualified for the flat ₦32,000 addition, as some had already benefited from earlier percentage-based adjustments. Institutions affected by this exemption include Peoples Bank, Assurance Bank, Nigeria Reinsurance, NICON Insurance, NITEL/MTEL, PTI, and PHCN.
The completion of the arrears payment is expected to bring relief to thousands of retirees who had awaited the balance of the increment. It also reinforces the Federal Government’s ongoing pension reform agenda, which includes plans for pension harmonisation and expanded health insurance coverage for DBS pensioners. PTAD reaffirmed its commitment to ensuring prompt and transparent pension payments while continuing reforms aimed at improving the welfare and dignity of senior citizens across the country.
