The Pension Transitional Arrangement Directorate (PTAD) has commenced the payment of newly approved pension increments to retirees under the Defined Benefit Scheme (DBS) with the adjustments effective from the September 2025 payroll cycle.
The implementation follows the approval of President Bola Tinubu for enhanced welfare benefits to pensioners.
The increments include a fixed ₦32,000 addition as well as percentage adjustments of 10.66 percent and 12.95 percent for eligible categories. According to PTAD, a total of 832,000 pensioners will benefit from the new package.
The reform was made possible after the Federal Ministry of Finance released ₦820.19 billion from the ₦845 billion emergency allocation earlier approved by the Federal Government.
The intervention provides funding for the immediate commencement of the revised pension structure.
PTAD confirmed that the adjustments will cover pensioners of defunct public institutions, privatised agencies, and treasury-funded parastatals who retired before the introduction of the Contributory Pension Scheme in 2004.
The directorate also stated that pension harmonisation and enrolment into the National Health Insurance Scheme are part of the broader welfare package for retirees.
The Executive Secretary of PTAD, Tolulope Odunaiya, had earlier sought an emergency budgetary intervention to implement the increments and harmonisation process.
The approval, according to PTAD, demonstrates the government’s commitment to improving the welfare of senior citizens in line with its Renewed Hope Agenda.
Stakeholders including the Nigeria Union of Pensioners and the Federal Parastatals and Private Sector Pensioners Association of Nigeria were recognised for their cooperation during the planning and negotiation phase.
PTAD assured retirees that it will continue to work with the Ministry of Finance, the Accountant-General of the Federation, and regulatory authorities to secure additional releases from the approved funds and sustain future pension obligations.
The latest increment addresses long-standing concerns of irregular payments and low benefit levels among DBS pensioners, offering a measure of stability and improved welfare for thousands of households dependent on retirement benefits.