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September 10, 2025 by Tony Akowe, Abuja
The Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, yesterday said President Bola Ahmed Tinubu had approved the implementation of a health insurance scheme for retirees under the Defined Benefit Scheme (DBS).
Odunaiya announced this during the directorate’s 2025 budget performance presentation before the House of Representatives Committee on Pensions.
The Executive Secretary said the agency had seamlessly implemented the 28 per cent pension increment approved by the Federal Government in 2024 for the pensioners and settled the 35 months of pension arrears for NITEL/MTEL retirees.
She told the lawmakers that even though it had concluded the payment of arrears to over 155,000 pensioners, it was facing eviction from its Maitama office and struggling with vendor payments.
Odunaiya explained that out of about N128.9 billion appropriated for pensions this year, N62.7 billion was released in June, while N56.6 billion had been utilised.
According to her, no allocation was made for gratuities in the current year due to an oversight.
The PTAD chief stated that despite the prevailing situation, the agency continued to meet its pension obligations and was working with the Federal Government to address unfunded liabilities and other challenges.
She also announced that N25 billion was appropriated for unfunded pension liabilities in 2025, with N13 billion released and N8.7 billion so far utilised.
“On personnel expenditure, N2.4 billion was appropriated for 2025, of which N1.09 billion has been released and fully utilised. Overhead costs recorded N1.49 billion in appropriations, with N434 million released and N334 million expended by mid-year. Capital expenditure of N820 million has yet to be implemented due to delays arising from the bottom-up cash flow management policy and the extension of the 2024 capital budget to December 2025,” she said.
The Chairman of the House Committee on Pensions, Hussaini Jallo, advised the agency to address gratuity provisions, capital project implementation, and compliance with Corporate Social Responsibility (CRS) requirements, ahead of its 2026 budget defence.
The lawmaker applauded PTAD for its steady progress in implementing pension reforms and improving the welfare of retirees under the Defined Benefit Scheme (DBS).
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He also praised the agency for what he called its “tangible efforts to safeguard the welfare of pensioners”.
Jallo noted that the directorate had consistently demonstrated commitment to accountability and service delivery.
The committee chairman reminded PTAD of the need to embrace CSR as part of its plans.
He promised that the committee would ensure CSR provisions are reflected in the 2026 budget of all pension-related agencies.
“Corporate social responsibility is not just about compliance; it’s about giving back. As we move into the 2026 budget year, we want to see CSR captured by all pension agencies, including PTAD,” Jallo said.
The committee chairman assured pensioners that the National Assembly was committed to protecting their rights and ensuring prompt payment of entitlements.
He promised that the committee would continue to work closely with PTAD to resolve outstanding issues. He also pledged continued oversight support and PTAD, expressing gratitude for the House Committee’s guidance and collaboration.
Citing sections 88 and 89 of the 1999 Constitution (as amended) and Section 81 of the House Standing Orders, Jallo reiterated that the committee was mandated to conduct strict oversight on all pension-related matters.
“The House has directed us to carry out a thorough oversight of pension agencies. Activities in 2026 will not be business as usual. We will enforce accountability and ensure pensioners get what is due to them,” he added.
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