The Pension Transitional Arrangement Directorate (PTAD) has commenced implementation of the new pension increments for retirees under the Defined Benefit Scheme (DBS), following the partial release of N20.188 billion by the federal government.
The adjustment includes a flat rate of N32,000 and percentage increases of 10.66 per cent and 12.95 per cent, effective in the September 2025 payroll cycle. PTAD confirmed the rollout in a statement on Tuesday, noting that the move follows President Bola Tinubu’s approval of an emergency budget allocation to support revised pension rates.
“The Directorate is delighted to announce the commencement of the N32,000, 10.66 per cent, and 12.95 per cent pension increment for eligible pensioners under PTAD management,” the statement read.
The funding comes from the N45 billion emergency allocation approved by the Federal Government, with the initial tranche released by the Ministry of Finance.
President Tinubu’s approval is part of a wider reform agenda aimed at enhancing senior citizens’ welfare. In August, he endorsed measures including the immediate implementation of new pension rates and a harmonisation policy to be incorporated into the 2026 budget.
“This milestone reaffirms the federal government’s dedication to safeguarding the welfare and entitlements of DBS pensioners in line with the Renewed Hope Agenda,” said Mr. Olugbenga Ajayi, Head of Corporate Communications at PTAD.
The reforms also include health insurance coverage for all DBS retirees, improving access to essential healthcare and reducing out-of-pocket medical costs. The harmonisation policy aims to streamline payments and eliminate disparities, promoting equity, financial security, and dignity for retirees.
With the September payroll cycle now reflecting the new increments, thousands of retirees nationwide are expected to see tangible improvements in their monthly entitlements.
Last month, the federal government disbursed N5.12 billion in pension arrears to 90,689 DBS retirees, including Nigeria Customs Service, Immigration Service, Prisons Pension Department (CIPPD), Police Pension Department (PPD), Civil Service Pension Department (CSPD), and Parastatals Pension Department (PAPD) pensioners.
