The Nigerian Federal Government has announced the settlement of more than N39 billion in inherited pension liabilities owed to thousands of pensioners under the Defined Benefit Scheme.
The payment resolves outstanding debts linked to former state-owned enterprises, including the Nigeria Telecommunications Limited (NITEL) and the defunct Power Holding Company of Nigeria (PHCN), as well as legacy obligations for bank workers.
The move addresses a significant fiscal backlog that has weighed on public sector balance sheets for years.
By clearing these specific liabilities, the government aims to reduce legal and administrative risks associated with delayed pension payments, which have historically been a source of labor unrest and litigation in the country.
This development comes as the Nigerian government continues to restructure various state-owned assets and manage fiscal pressures.
The settlement is part of broader efforts to regularize public sector obligations and improve the efficiency of state finances.