Tinubu Approves Major Reforms to Clear Pension Backlogs and Boost Benefits for Retirees

President Bola Tinubu has approved sweeping reforms to boost pensions and welfare benefits for retirees nationwide.

The package includes payment increases, healthcare coverage, and clearance of long-standing arrears for affected pensioners.

President Bola Tinubu has approved a comprehensive package of reforms to address pension arrears and enhance welfare benefits for retirees under the Defined Benefit Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) announced on Friday.

According to PTAD, the approval came after its Executive Secretary, Tolulope Odunaiya, submitted a formal request for an emergency budgetary allocation to implement the reforms. The measures align with the administration’s Renewed Hope Agenda and are aimed at improving the lives of senior citizens who retired before the adoption of the Contributory Pension Scheme in 2004.

Key provisions include:

• A ₦32,000 pension increase for DBS beneficiaries.
• Percentage increments for pensioners from defunct and privatised agencies.
• Full harmonisation of pension rates.
• Enrolment of all DBS pensioners into the National Health Insurance Scheme (NHIS).
• Clearance of long-standing unfunded liabilities owed to NITEL/MTEL retirees and other parastatal pensioners.

PTAD’s Head of Corporate Communications, Olugbenga Ajayi, said the President has approved additional budgetary allocations to cover the new pension rates and health insurance enrolment in the 2026 budget, as well as the inclusion of outstanding arrears.

Odunaiya described the decision as a milestone in pension administration, noting that it will address disparities in payments and provide better healthcare access. She expressed gratitude to President Tinubu, calling the approvals “a new era of impactful welfare benefits for pensioners.”

The reforms will be rolled out in phases in partnership with relevant government agencies to ensure a smooth transition. PTAD reassured pensioners of its commitment to safeguarding their welfare and improving their quality of life.