FG Settles ₦39.63bn Pension Liabilities for Former NITEL, PHCN, and Defunct Bank Workers|LAGOS EYE NEWS

The Federal Government has approved and commenced the payment of ₦39.63 billion to settle outstanding pension liabilities owed to former workers of NITEL/MTEL, PHCN, and pensioners of some defunct financial institutions.

According to official information, President Bola Ahmed Tinubu approved the release of ₦25.05 billion in August 2025 to offset a 35-month pension liability owed to 9,675 former NITEL/MTEL employees. The funding was provided under the 2026 Appropriation Act, with the government stating that the outstanding pension obligation has now been fully settled.

In addition, the government disbursed ₦9.48 billion, representing the initial 50 per cent payment of Back End Computation arrears to 3,959 eligible PHCN pensioners.

Another ₦5.09 billion was released to clear the remaining 50 per cent balance of the 10.66 per cent and 12.95 per cent pension increment arrears owed to 11,180 eligible pensioners of Assurance Bank, NICON, NITEL, and People’s Bank.

The combined payments amount to ₦39.63 billion.

The development has also renewed attention on the history of NITEL’s privatisation process. During previous administrations, several attempts to privatise and revive the telecommunications company failed, including the management contract awarded to Pentascope. Those efforts ultimately did not prevent the collapse of the company, leaving thousands of former employees with unresolved pension obligations.

Former Vice President Atiku Abubakar, who chaired the National Council on Privatisation during part of that period, has previously acknowledged the challenges and unsuccessful attempts to privatise and restructure NITEL.

The Federal Government said the latest payments are part of efforts to address long-standing pension liabilities inherited from previous administrations and fulfil outstanding obligations to affected retirees.

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