FG pays N18.96bn PHCN Pension arrears, closes outstanding liability

By Onu Okorie

Federal Government has completed the payment of ₦18.96 billion in Back-End Computation (BEC) arrears to eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN) under the Defined Benefit Scheme (DBS).
The Head of the Information and Public Relations Unit of the Federal Ministry of Finance, Mrs Efe Ovuakporie, disclosed this in a statement on Friday in Abuja.
According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the latest payment of ₦9,476,313,375.74, representing the outstanding 50 per cent balance of the arrears, was paid by the Pension Transitional Arrangement Directorate (PTAD) to 3,958 eligible PHCN DBS pensioners.
The first tranche, also representing 50 per cent of the arrears, amounted to ₦9,481,886,576.53 and was paid in June 2026 to 3,959 eligible pensioners.
With the payment of the second tranche, PTAD has now fully settled the verified BEC arrears owed to eligible PHCN DBS pensioners covered by the exercise.
The two payments bring the total amount disbursed to ₦18,958,199,952.27.
PTAD explained that the difference of ₦5,573,200.79 between the two tranches was due to the death of one pensioner after the first payment and before the processing of the second tranche.
Commenting on the development, Oyedele said the completion of the payments demonstrated the Federal Government’s commitment to addressing inherited pension liabilities and ensuring that verified entitlements owed to pensioners were settled.
He said pension obligations remained an important responsibility of government to citizens who had served the country, adding that the settlement of verified liabilities would continue to receive appropriate attention within the framework of available resources and approved processes.
The PHCN BEC arrears arose from the computation of additional pension entitlements due to eligible pensioners under the Defined Benefit Scheme.
The full settlement of the arrears therefore brings the outstanding BEC liability covered by the exercise to an end.
The completion of the payment is expected to provide relief to the affected pensioners and their families, many of whom had awaited the resolution of their outstanding entitlements.
The Federal Ministry of Finance also commended PTAD, under the leadership of its Executive Secretary, Tolu Odunaya, for its diligence and effective coordination of the exercise, which culminated in the full settlement of the verified BEC arrears.
The ministry said the government would continue to work through relevant agencies to address outstanding pension liabilities and strengthen the administration of pension entitlements under the Defined Benefit Scheme.
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