The Federal Government has officially commenced the payment of a ₦32,000 pension increment to retirees under the Defined Benefit Scheme (DBS), starting with the September 2025 pension payroll cycle.
The announcement was made on Tuesday by the Pension Transitional Arrangement Directorate (PTAD), which confirmed that the increase follows a recent partial release of ₦20.188 billion from the approved ₦45 billion emergency funding by the Federal Government.
“This milestone clearly reaffirms the Federal Government’s dedication to safeguarding the welfare and entitlements of DBS pensioners, in line with the Renewed Hope Agenda,” PTAD said in a statement.
According to PTAD, the pension increment includes percentage increases of 10.66% and 12.95%, depending on the specific pensioner category.
The payment is part of wider reforms to enhance the welfare of senior citizens under the DBS, which covers pensioners who retired before the implementation of the contributory pension scheme.
The implementation follows PTAD’s earlier August 8 publication outlining the revised pension rates. The funding breakthrough came through the Federal Ministry of Finance, which partially disbursed the ₦20.188 billion to kick-start the enhanced payments.
The Federal Government had initially approved an emergency funding package of ₦45 billion, aimed at implementing pension reforms and meeting backlog obligations.
PTAD expressed gratitude to President Bola Ahmed Tinubu, GCFR, for approving the emergency intervention fund, noting that his administration’s policies have shown a strong commitment to pensioners’ welfare.
The directorate also acknowledged the support of:
- Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun
- Minister of State for Finance, Dr. Doris Uzoka-Anite
- Chief of Staff to the President, Hon. Femi Gbajabiamila
- Special Adviser to the President on Revenue, Dr. Zacch Adedeji
- Accountant-General of the Federation, Mr. Shamseldeen B. Ogunjimi
- National Assembly Committees on Establishment, Public Service, and Pensions
PTAD credited these stakeholders for their “timely interventions, tireless disposition, and coordinated efforts” that ensured the successful rollout of the enhanced payments.
The statement also lauded the cooperation and patience of organized pensioner groups, including:
- The Nigeria Union of Pensioners (NUP)
- The Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN)
Their understanding and constructive engagement were key to the resolution of long-standing funding delays, PTAD said.
PTAD reaffirmed its commitment to:
- Ensuring the release of remaining approved funds
- Meeting future pension increment obligations
- Continuing to collaborate with relevant authorities and stakeholders to sustain pension reform momentum
“We assure our DBS pensioners and stakeholders of our resolve to uphold the integrity of pension payments and to work diligently to fulfill all obligations under the Defined Benefit Scheme,” PTAD concluded.
The Defined Benefit Scheme (DBS) is Nigeria’s legacy pension arrangement for public sector workers who retired before the 2004 introduction of the Contributory Pension Scheme (CPS). Under DBS, the government pays retirees directly based on their last-earned salaries and years of service.
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