FG Begins Payment of N32,000 Pension Increment to Retirees

The Federal Government has commenced payment of the new N32,000 pension increment to retirees under the Defined Benefit Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) has confirmed.

According to a statement released by PTAD Management on Tuesday, the adjustments have been included in the September 2025 payroll cycle. About 832,000 pensioners are expected to benefit from the package, which combines a fixed N32,000 increase with additional percentage adjustments of 10.66 percent and 12.95 percent for eligible categories.

PTAD explained that the move follows President Bola Tinubu’s approval of an emergency budgetary allocation earlier in August. The Executive Secretary of PTAD, Tolulope Odunaiya, had requested the special intervention to implement wide-ranging pension reforms and welfare improvements for retirees.

The Federal Ministry of Finance released N820.188 billion from the N845 billion emergency fund approved by the government, enabling immediate disbursement of the enhanced payments.

The statement read in part, “The Directorate is delighted to announce the commencement of the implementation of the 832,000, 10.66 percent and 12.95 percent pension increment for eligible pensioners under PTAD management in the September 2025 pension payroll cycle. This milestone reaffirms the Federal Government’s dedication to safeguarding the welfare and entitlements of DBS pensioners in line with the Renewed Hope Agenda.”

PTAD also expressed gratitude to President Tinubu for the approval, while acknowledging the support of the Minister of Finance, Wale Edun, the Minister of State for Finance, Doris Uzoka-Anite, and the Accountant-General of the Federation. Organised pension groups, including the Nigeria Union of Pensioners and the Federal Parastatals and Private Sector Pensioners Association of Nigeria, were also commended for their cooperation during the reform process.

The DBS covers pensioners who retired before the introduction of the Contributory Pension Scheme in 2004, including retirees of defunct public institutions, privatised agencies, and treasury-funded parastatals. The reforms are expected to address issues of irregular payments, delayed harmonisation, and poor healthcare access faced by pensioners for years.