President Bola Tinubu has approved the payment of over N39 billion in pension arrears owed to 9,675 pensioners of the defunct Nigerian Telecommunications Limited and
Mobile Telecommunications Limited.
The payment covers 35 months of outstanding Defined Benefit Scheme (DBS) liabilities inherited by the Federal Government.
The Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN) confirmed this in a statement on Monday.
According to FEPPPAN President-General, Elder Benjamin Maisamari Amako, and General Secretary, Mr. Franklin Erinle, the approval shows government’s commitment to restoring dignity and financial security to retirees who had been owed for years.
FEPPPAN also commended PTAD, the National Assembly, Federal Ministry of Finance, Budget Office, and the Office of the Accountant-General for facilitating the presidential approval.
The union said the over N39 billion settlement includes N25.05 billion paid to clear the outstanding 35-month pension liabilities of eligible pensioners of the defunct NITEL/ MTEL, N9.48 billion representing the first tranche of the Back End Computation (BEC) arrears for eligible Power Holding Company of Nigeria pensioners and N5.09 billion covering the outstanding balance of the 10.66 percent and 12.95 percent pension increment arrears due to eligible pensioners of the defunct Assurance Bank, NICON, NITEL and People’s Bank of Nigeria.
“This is a clear demonstration of the president’s commitment to the welfare of pensioners under the Renewed Hope Agenda and a significant step towards restoring the dignity, confidence and financial security of retirees who devoted the greater part of their productive years to the service of the nation.
“This settlement represents not only the liquidation of inherited financial liabilities but also the restoration of hope to thousands of retirees and their families who had patiently awaited the fulfilment of government’s obligations,” FEPPPAN leadership added.
It implored President Tinubu to sustain the momentum by ensuring the settlement of all outstanding pension obligations, prompt payment of monthly pensions and continued reforms capable of protecting retirees against inflation and the rising cost of living.