President Bola Tinubu has approved a major set of pension reforms that will raise monthly payments and provide health insurance for retirees under Nigeria’s Defined Benefit Scheme (DBS).
The announcement came from the Pension Transitional Arrangement Directorate (PTAD) on Friday, following a request submitted by the agency’s Executive Secretary, Tolulope Odunaiya, for emergency funding to implement the changes.
What retirees should expect
The approved package includes a ₦32,000 increase in pensions, healthcare coverage through the National Health Insurance Scheme (NHIS), and the clearance of unpaid pension arrears.
PTAD outlined the key components of the plan to include; ₦32,000 monthly pension increase, percentage-based increases for pensioners from defunct and privatized agencies, full pension harmonization across all DBS beneficiaries, NHIS enrollment for eligible retirees and settlement of outstanding pension liabilities, including those owed to former NITEL and MTEL workers.
According to the agency, the reforms will be rolled out in phases and reflected in the 2026 national budget.
President Tinubu has already approved the extra budgetary allocations needed to get started.
PTAD hails a ‘turning point’
PTAD described the reforms as a landmark moment in how pensions are managed for retired public workers.
Odunaiya thanked the President for what she called “historic approvals” and said they reflect his administration’s focus on dignity and fairness for the country’s senior citizens.
“These reforms are not just numbers on paper. They are about restoring dignity to the lives of people who served this country,” she said.
The Defined Benefit Scheme covers retirees who left public service before 2004, when Nigeria shifted to the Contributory Pension Scheme.
Many of these pensioners, particularly those from defunct public institutions and privatized agencies, have faced delayed payments, unfair rates, and poor access to healthcare.
For years, retirees have called for reforms. With these approvals, many of those concerns are now being addressed.
What Happens Next
PTAD says it will work closely with other government bodies to ensure a smooth rollout.
The agency also reaffirmed its commitment to making pensioners’ welfare a permanent priority.
“This is just the beginning. We’re focused on following through and making sure every retiree sees the benefits,” the agency stated.
While the full implementation of these changes may take time, this is a significant step toward fixing long-standing issues in Nigeria’s pension system.
