FG pays ₦18.96bn pension arrears owed defunct PHCN workers

The Federal Government has completed the payment of ₦18.96 billion in Back-End Computation (BEC) arrears to eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN) under the Defined Benefit Scheme (DBS), bringing the outstanding liability covered by the exercise to a close.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that the latest payment of ₦9,476,313,375.74, representing the outstanding 50 per cent balance of the BEC arrears, has been paid by the Pension Transitional Arrangement Directorate (PTAD) to 3,958 eligible PHCN DBS pensioners.

The first tranche, representing 50 per cent of the arrears, amounted to ₦9,481,886,576.53 and was paid in June 2026 to 3,959 eligible pensioners.

With the payment of the second tranche, PTAD has now fully settled the BEC arrears due to all eligible PHCN DBS pensioners covered by the exercise. The two tranches bring the total amount disbursed to ₦18,958,199,952.27.

PTAD explained that the difference of ₦5,573,200.79 between the two tranches arose from the death of one pensioner after the first payment and before the second tranche was processed.

Commenting on the development, Oyedele said the completion of the payment demonstrated the Federal Government’s determination to address inherited pension liabilities and ensure that verified entitlements due to pensioners are settled.

He noted that pension obligations remain an important responsibility of government to citizens who served the country, adding that the settlement of verified liabilities would continue to receive appropriate attention within the framework of available resources and approved processes.

The PHCN BEC arrears arose from the computation of additional pension entitlements due to eligible pensioners under the Defined Benefit Scheme. Their full settlement therefore brings the outstanding BEC liability covered by this exercise to an end.

The completion of the payment is expected to provide relief to the affected pensioners and their families, many of whom have awaited the resolution of the outstanding entitlements.

The Federal Ministry of Finance commended PTAD, under the leadership of its Executive Secretary, Tolu Odunaya, for its diligence and effective coordination of the exercise, which culminated in the full settlement of the verified BEC arrears.

The Ministry pledged the administration’a commitment to paying outstanding pension liabilities and strengthening the administration of pension entitlements under the Defined Benefit Scheme.