Nigeria’s Pension Transitional Arrangement Directorate, the Federal Government agency responsible for administering pensions under the old Defined Benefits Scheme, has announced the payment of a total of ₦55.9 billion to pensioners and the next-of-kin of deceased retirees across the country in December 2025.
The disclosure was contained in an official statement issued on Friday, 2 January 2026, and signed by Olugbenga Ajayi, Head of the Corporate Communications Unit of the Pension Transitional Arrangement Directorate. The statement explained that the payments were made to eligible beneficiaries under the Defined Benefits Scheme, which covers Federal Government workers who retired before Nigeria introduced the contributory pension system in 2004.
According to the agency, ₦13.41 billion of the total amount was disbursed as regular monthly pension payments to beneficiaries across all pension departments, including Nigerian retirees residing outside the country. The remaining ₦42.5 billion was applied toward clearing accumulated pension arrears owed to retirees and the families of deceased pensioners.
Okay News reports that the arrears settlement addressed outstanding liabilities arising from the ₦32,000 pension increment, as well as the 10.66 per cent and 12.95 per cent pension increases approved in previous years. The payments also covered unpaid gratuities, death benefits, and other accumulated pension obligations owed to eligible beneficiaries.
Providing further clarification, the Directorate stated, “The arrears payment covers outstanding obligations arising from the ₦32,000 pension increment, as well as the 10.66 per cent and 12.95 per cent pension increments, in addition to other accrued pension arrears, gratuity, and death benefits owed to eligible beneficiaries.”
A department-by-department breakdown showed that the Police Pension Department received ₦5.88 million for five pensioners. The Customs, Immigration and Prisons Pension Department recorded payments of ₦604.33 million to 8,606 pensioners.
The Civil Service Pension Department received the largest allocation, with ₦16.36 billion paid to 71,643 pensioners, reflecting the size of the retired civil service workforce under the Defined Benefits Scheme.
Beneficiaries under the Defunct and Transferred Agencies Department were paid ₦15.07 billion, covering 24,995 pensioners, while the Parastatals Pension Department received ₦7.81 billion for 25,718 pensioners. In addition, ₦2.37 billion was paid to 28,245 pensioners under the Tertiary Education and Health Department.
The agency also disclosed that ₦289.11 million was released as gratuity and death benefits to eligible next-of-kin of deceased pensioners during the same period.
While confirming the progress made, the Directorate noted that arrears linked to the ₦32,000 pension increase had now been fully cleared across all pension departments, except for one outstanding month each for pensioners in the Parastatals Pension Department and the Tertiary Education and Health Department.
“With these payments, arrears resulting from the ₦32,000 pension increment have been fully liquidated across all pension departments, except for one month each outstanding for pensioners in the PaPD and TEHD,” the statement added.
Reacting to the development, Tolulope Odunaiya, Executive Secretary of the Pension Transitional Arrangement Directorate, said the disbursements underscored the Federal Government of Nigeria’s renewed focus on improving the welfare of senior citizens.
She stated that the payments “reflect President Bola Tinubu’s unwavering commitment to the welfare of senior citizens, in line with the administration’s Renewed Hope Agenda,” referring to the policy framework of Nigeria’s current administration led by President Bola Ahmed Tinubu, who assumed office in May 2023.
Odunaiya further assured pensioners that the remaining outstanding arrears would be settled, adding that the Directorate remained committed to initiatives aimed at improving the overall well-being of retirees under the Defined Benefits Scheme.
