The Pension Transitional Arrangement Directorate (PTAD) has commenced the implementation of new pension increments for retirees under the Defined Benefit Scheme (DBS), following the partial release of N20.188 billion by the Federal Government.
The adjustment includes a flat rate of N32,000 and percentage increases of 10.66% and 12.95%, which will reflect in the September 2025 payroll cycle.
In a statement issued on Tuesday, PTAD confirmed that the development follows President Bola Tinubu’s approval of an emergency budgetary allocation to support the revised pension rates.
“The Directorate is delighted to announce the commencement of the implementation of the N32,000, 10.66%, and 12.95% pension increment for eligible pensioners under the management of PTAD,” the statement read.
The funding was drawn from the N45 billion emergency allocation approved by the Federal Government, with the initial tranche released by the Federal Ministry of Finance.
Tinubu Approves Pension Reforms, Health Coverage for DBS Retirees
President Tinubu’s approval of the pension increment is part of a broader reform agenda aimed at improving the welfare of senior citizens.
In August, the President endorsed a series of measures, including the immediate implementation of new pension rates and the adoption of a harmonisation policy to be incorporated into the 2026 pension budget.
“The milestone clearly reaffirms the Federal Government’s dedication to safeguarding the welfare and entitlements of DBS pensioners in line with the Renewed Hope Agenda,” said Mr. Olugbenga Ajayi, Head of Corporate Communications at PTAD.
Among the reforms is the rollout of health insurance coverage for all DBS pensioners, ensuring access to essential healthcare services and reducing out-of-pocket medical expenses for retirees.
Pension Harmonisation Signals New Era for Retirees
The pension harmonisation policy, once integrated into the 2026 budget, is expected to streamline pension payments and eliminate disparities among retirees. PTAD noted that the reforms are designed to promote equity, financial security, and dignity for pensioners who served the nation under the DBS framework.
The implementation of these measures marks a significant milestone in Nigeria’s pension reform efforts and reflects the government’s commitment to inclusive social protection.
With the September payroll cycle now reflecting the new increments, thousands of retirees across the country will begin to see tangible improvements in their monthly entitlements.
What You Should Know
- Last month, the Federal Government released funds for the disbursement of N5.12 billion in pension arrears to 90,689 Defined Benefit Scheme pensioners under the Pension Transitional Arrangement Directorate.
- The Nigeria Customs Service, the Nigeria Immigration Service, and Prisons Pension Department (CIPPD) pensioners, which sum up to 8,626, received N276,032 for one month’s arrears; while the Police, Pension Department (PPD) pensioners, 9,681 in number, received N619,584 for two months as arrears.
- The Civil Service Pension Department (CSPD) pensioners, which are 12,773 in number, received N408,736 for one-month arrears, and the Parastatals Pension Department (PAPD) pensioners, 59,609 in number, received N3,814.
