The federal government has approved the payment of N39.6bn to clear outstanding pension liabilities owed to thousands of retirees from several defunct government-owned organisations and financial institutions.
The payment will benefit eligible pensioners of the defunct Nigerian Telecommunications Limited (NITEL), Mobile Telecommunications Limited (MTEL), Power Holding Company of Nigeria (PHCN), Assurance Bank, NICON, and the defunct People’s Bank of Nigeria.
A breakdown of the approved payments shows that N25.05 billion has been earmarked to settle a 35-month pension liability owed to 9,675 eligible pensioners of the defunct NITEL and MTEL.
The government also approved N9.48 billion as the initial 50% payment of back-end computation arrears for 3,959 eligible PHCN pensioners.
In addition, N5.09 billion will be paid to cover the outstanding balance of the 10.66% and 12.95% pension increment arrears owed to 11,180 eligible pensioners of Assurance Bank, NICON, NITEL and the defunct People’s Bank of Nigeria.
The latest disbursement is aimed at settling long-standing pension obligations and improving the welfare of retirees who have awaited the payment of their entitlements.
The development is expected to bring relief to thousands of affected pensioners, many of whom have been demanding the settlement of their outstanding pension benefits for years.
The payment forms part of the federal government’s efforts to address inherited pension liabilities and ensure that eligible retirees receive their outstanding benefits.
