2025: PTAD steadies pension payouts, faces old burdens

The Pension Transitional Arrangement Directorate (PTAD), which oversees the Defined Benefit Scheme (DBS) for federal retirees, made notable strides in 2025, offering hope to many pensioners long burdened by irregular payments and low benefits. However, lingering challenges continue to plaque the DBS.

One of the biggest milestones this year was the implementation of a minimum monthly pension of N32,000 in September, along with additional percentage-based increments of 10.66 per cent and 12.95per cent for eligible pension categories.

The move followed an emergency funding approval by President Bola Tinubu to address inflationary pressures on retirees.

“We are committed to ensuring that pensioners under the DBS receive not just regular payments but also improved welfare,” PTAD’s Executive Secretary, Tolulope Odunaiya had stated during the announcement of the upward review.

The new minimum affected over 832,000 pensioners, spanning civil service, police, customs, and other federal parastatals.

Arrears disbursement, regular payment

PTAD also disbursed N8.6 billion in arrears to over 148,000 retirees, marking a significant reduction in historical debts. Payments for October and November were concluded without delays, confirming improvements in PTAD’s operational efficiency.

With these, the agency’s cumulative DBS disbursement reportedly crossed the N1 trillion marks, making it one of the most consistent payment years since PTAD’s inception.

Onboarding, exclusion concerns

Yet, not all retiree groups are celebrating. Ex-workers of the defunct Nigerian Airways and some parastatals remain excluded from monthly payments. Many complain of unending verification processes and lack of onboarding.

“We are suffering,” a retiree said during a recent protest.

PTAD ES has however said that formal government approval is required before such groups can be added to the payroll, a bureaucratic bottleneck that remains unresolved.

Check-off dues, stakeholder engagement

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The planned deduction of check-off dues which is union fees from DBS pensioners, scheduled for 2025, was also postponed following resistance from stakeholders and the need for more consultations. This highlights ongoing tensions between pension unions and PTAD over representation and welfare.

Suffice to state that PTAD’s 2025 performance represents a positive turn for Nigeria’s legacy pensioners, especially in restoring dignity through timely payments and increased allowances. But to truly close the reform gap, the agency must urgently resolve outstanding onboarding delays, strengthen healthcare access, and sustain transparent engagement with stakeholders.

Speaking on PTAD’s Record of Service and Delivery during the year, Odunaiya said PTAD remains one of the most reform-driven and transparent public service institutions in Nigeria, with notable achievements including.

She said: “The Directorate has sustained the regular and prompt payment of monthly pensions to all verified DBS Pensioners. It is noteworthy that the Federal Government has disbursed a cumulative total of N1.002 trillion in monthly pension payments to eligible DBS Pensioners from the time of the DBS take-over in 2015 to October 2025.

“We have also achieved digitization of pension records with The Bank Verification Number (BVN) and National Identification Number (NIN) to eliminate ghost Pensioners; the “I Am Alive” validation platform, allowing DBS Pensioners to confirm their aliveness status remotely and conveniently; Resolution of inherited arrears and gratuities across the Civil Service, Parastatals, Police, and Customs, Immigration & Prisons Pension Departments; and Open engagement and collaboration with recognized pension unions for improved service delivery,” she added.

Odunaiya expressed commitment to the DBS pensioners’ welfare and payment of the outstanding arrears of the approved pension increments as additional funds are released by the Federal Government.

“Our pensioners are therefore advised to rely solely on official PTAD communication channels for accurate and verified information. We appreciate the cooperation and patience of all DBS pensioners and urges all stakeholders to sustain the collective spirit of unity, dialogue, and partnership. It is our strong belief and a time-tested truism that constructive engagement remains the best path forward to consolidating progress and achieving lasting welfare benefits for all DBS pensioners.

“PTAD’s mandate remains unequivocal; to safeguard and improve the welfare of every DBS Pensioner. The implementation of the ₦32,000 pension increment, alongside the range of Presidential approvals already secured clearly demonstrate the Federal Government’s unwavering determination to fully resolve the long-standing challenges surrounding the payment of pension arrears and to firmly deliver on the Renewed Hope Agenda. This Administration will continue to stand with Nigeria’s senior citizens, protecting their dignity, security, and well-being at all times,” she noted.