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The Pension Transitional Arrangement Directorate has raised concern over the inadequate provision for pension arrears in the 2025 national budget recently signed by President Bola Tinubu.
This was disclosed in a statement issued by the Head of Corporate Communications, PTAD, Mr Olugbenga Ajayi, on Friday.
The Executive Secretary of PTAD, Ms Tolulope Odunaiya, said this during a courtesy visit to the Director-General of the Budget Office of the Federation, Mr Tanimu Yakubu, in Abuja.
Odunaiya expressed worry that the 2025 appropriation, which totals N54.99tn, does not adequately cover accumulated pension liabilities, despite its overall increase compared to the previous year.
She said the omission threatens the welfare of retired civil servants who rely solely on pensions for survival.
The statement read, “During the meeting, Odunaiya emphasised the importance of strengthening collaboration between PTAD and the Budget Office to ensure the timely and efficient resolution of pension-related issues. She expressed concern that the 2025 National Budget does not adequately provide for pension arrears, highlighting the urgent need for intervention and support.
“Odunaiya noted that shortfalls in budgetary releases directly affect the well-being of pensioners, many of whom depend solely on their pensions for survival. As part of her recommendations, she proposed the establishment of a joint committee to address the challenges.”
She stressed the importance of enhanced collaboration between PTAD and the Budget Office to resolve pension challenges and recommended the immediate creation of a joint committee to address them.
Responding, Yakubu accepted the proposal and formally set up the committee.
According to the statement, the committee comprises officials from both PTAD and the Budget Office and is tasked with developing actionable solutions to ensure pension obligations are met without delay.
President Bola Tinubu signed the 2025 Appropriation Act into law, approving a record budget of N54.99tn, the highest in Nigeria’s history.
The budget was raised from the initial proposal of N49.7tn submitted to the National Assembly.
The fiscal plan makes provisions for N13.64tn in recurrent expenditure, N23.96tn for capital projects, N14.32tn for debt servicing, and N3.65tn for statutory transfers, while projecting a deficit of N13.08tn, to be financed through domestic and external borrowing.
The budget assumptions include a crude oil benchmark of \$75 per barrel, oil production at 2.06 million barrels per day, an average exchange rate of N1,400/\$, and an inflation target of 15 per cent.
The Federal Executive Council had earlier approved the issuance of a N758bn bond to settle outstanding pension liabilities, including accrued rights and pension increases.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the approval authorises the Debt Management Office to raise the funds needed to clear the backlog of pension arrears.
The National Pension Commission earlier said that the approval of an N758bn bond to settle longstanding pension liabilities under the Contributory Pension Scheme would benefit university professors, low-income earners, and others.
