Coins in a glass jar. Pension
The Pension Transitional Arrangement Directorate (PTAD) says it requires an additional ₦45.1 billion to sustain the implementation of the recently approved ₦32,000 pension increment for federal retirees under the Defined Benefit Scheme (DBS) until December 2025.
Speaking during a stakeholder engagement in Lagos, PTAD Executive Secretary, Dr. Tolulope Odunaiya, disclosed that the Directorate has already expended over ₦27.5 billion towards the adjustment. The increment applies to federal pensioners who exited service on or before June 2007.
Odunaiya stated that accrued arrears across key departments—including Civil Service, Parastatals, Customs, Immigration, Prisons, and Police—are now between 40 and 80 per cent cleared. She added that the required ₦45.1 billion takes into account projected efficiency savings of ₦18.1 billion from the ongoing ‘I Am Alive’ pensioner verification initiative.
In addition, PTAD has begun implementing 10.66% and 12.95% pension increments for selected agencies within the Parastatals Pension Department. However, those payments are currently on hold pending further clarification from the National Salaries, Incomes and Wages Commission.
Looking ahead, Odunaiya said PTAD will prioritise the harmonisation of pensions to address disparities among retirees.
“We will vigorously pursue the approval of pension harmonisation to eliminate the gap between pensioners who retired at different times and on different salary structures,” she said.
She also revealed plans to extend healthcare coverage to all pensioners under the DBS by 2026 through a partnership with the National Health Insurance Authority (NHIA). This collaboration, launched in 2023, enables verified pensioners to enrol for health insurance using the ‘I Am Alive’ platform.
Despite its progress, PTAD is grappling with several challenges. These include delays in the monthly implementation of the ₦32,000 pension increment for 2024, unresolved back-end reviews in some parastatal pension computations, and slow reintegration of pensioners into the payroll after completing ‘I Am Alive’ verification.
“We are confronting these issues head-on through prudent financial management and operational optimisation,” Odunaiya said.
She noted that significant improvements have been made to PTAD’s IT infrastructure and internal systems to improve responsiveness.
Odunaiya confirmed that arrears arising from the 20/28% pension increment that took effect on 1 January 2024 have been fully paid. She acknowledged that the double increments approved by President Bola Tinubu have substantially raised PTAD’s monthly pension obligations, prompting fresh advocacy for increased funding.
Despite the financial strain, PTAD reassured pensioners of its continued commitment to their welfare.
