Tinubu okays major pension reforms, new welfare benefits for retirees

President Bola Tinubu has approved a series of far-reaching reforms aimed at clearing outstanding pension arrears and introducing enhanced welfare benefits for retirees under the Defined Benefit Scheme.

The announcement was made on Friday by the Pension Transitional Arrangement Directorate (PTAD), which confirmed that the green light followed a request from its Executive Secretary, Tolulope Odunaiya, for an emergency budgetary allocation.

According to PTAD, the reforms will address long-standing delays in pension payments, improve financial security for retirees, and ensure that the scheme’s beneficiaries receive updated benefits in line with current economic realities.

In a statement, PTAD said: “The Pension Transitional Arrangement Directorate is pleased to announce that His Excellency, President Bola Tinubu, has approved a series of far-reaching measures aimed at enhancing the welfare of Defined Benefit Scheme Pensioners, in line with the Renewed Hope Agenda.

“Recall that the Executive Secretary of PTAD, Tolulope Odunaiya, had earlier made a formal submission to the Presidency, requesting His Excellency’s consideration for an emergency budgetary allocation to implement key pension reforms and welfare benefits.”

The approved measures include a ₦32,000 pension increase, percentage raises for pensioners of defunct and privatised agencies, harmonisation of pensions across the DBS, enrolment in the National Health Insurance Scheme, and settlement of long-standing unfunded liabilities.

PTAD’s Head of Corporate Communications, Olugbenga Ajayi, stated that the President had authorised additional budgetary provisions for the new rates, harmonisation in the 2026 budget, and health insurance for all DBS pensioners. Outstanding arrears owed to NITEL/MTEL pensioners and other parastatal retirees will also be factored into the 2026 proposal.

Describing the development as a milestone, Odunaiya said the decision signalled a renewed focus on the welfare of senior citizens.

“These approvals are a testament to the Renewed Hope Agenda’s focus on equity, social justice, and the dignity of our Pensioners. Additionally, it cements the position of Mr. President as the leader who ushered a new era of far-reaching and impactful welfare benefits for Pensioners under the Defined Benefit Pension Scheme,” she said.

She added that the reforms will address disparities in pension rates and improve retirees’ access to healthcare, with phased implementation in collaboration with relevant agencies.

PTAD reaffirmed its commitment to safeguarding the rights and welfare of pensioners, noting that the DBS covers retirees from before the 2004 Contributory Pension Scheme, including those from defunct institutions, privatised agencies, and treasury-funded parastatals — many of whom have faced delayed payments, harmonisation issues, and inadequate healthcare.