The Federal Government has commenced payment of the newly approved pension increment for retirees under the Defined Benefit Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) announced on Tuesday.

According to PTAD, the adjustment, which takes effect from the September 2025 payroll cycle, includes a fixed increase of N32,000 as well as percentage increments of 10.66% and 12.95% for eligible categories of pensioners. About 832,000 retirees are expected to benefit.

In a statement signed by its management and posted on X, PTAD explained that the implementation was made possible following the partial release of N820.188 billion by the Federal Ministry of Finance from the N845 billion emergency funding earlier approved by the Federal Government.

“The Directorate is delighted to announce the commencement of the implementation of the N32,000, 10.66%, and 12.95% pension increments for eligible pensioners under its management in the September 2025 pension payroll cycle,” PTAD said.

The new package follows President Bola Tinubu’s approval in August of a series of welfare measures for DBS pensioners, after a request by PTAD’s Executive Secretary, Tolulope Odunaiya, for emergency budgetary support.

Beyond the increment, the reforms also cover:

• Pension harmonisation across all DBS categories,
• Enrolment of pensioners into the National Health Insurance Scheme (NHIS), and
• Settlement of long-standing unfunded pension liabilities.

PTAD described the development as a reaffirmation of the Federal Government’s commitment to safeguarding the welfare of retirees in line with the Renewed Hope Agenda.

The Directorate expressed appreciation to President Tinubu, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of State for Finance, Doris Uzoka-Anite; the Accountant-General of the Federation; as well as parliamentary committees and presidential aides for their “timely interventions.”

It also acknowledged the cooperation of pension groups, including the Nigeria Union of Pensioners (NUP) and the Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN) during the negotiation and planning process.

PTAD further assured stakeholders that it would continue working with relevant authorities to secure the release of the outstanding funds and sustain the implementation of the landmark pension reforms.

The DBS covers pensioners who retired before the introduction of the Contributory Pension Scheme in 2004, including retirees from defunct public institutions, privatised agencies, and treasury-funded parastatals. Many of them have long battled irregular payments, delayed harmonisation, and inadequate healthcare access—challenges the reforms are expected to ease.