The Pension Transitional Arrangement Directorate has voiced serious concern over the insufficient allocation for pension arrears in the N54.99tn budget recently signed into law by Tinubu.
In a statement issued on Friday, PTAD’s Head of Corporate Communications, Olugbenga Ajayi, disclosed that the matter came to light during a courtesy visit by the agency’s Executive Secretary, Tolulope Odunaiya, to the Director General of the Budget Office, Tanimu Yakubu, in Abuja.
Odunaiya criticised the 2025 budget, which despite surpassing last year’s figure, fails to make adequate provision for mounting pension liabilities. She warned that the omission endangers the livelihood of retired civil servants who depend entirely on their pensions.
“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.” She explained that lapses in budget releases directly hit pensioners, many of whom struggle to survive without prompt payments. To mitigate the issue, she proposed setting up a joint committee dedicated to resolving these challenges.
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. Yakubu responded by agreeing to the proposal and formally inaugurated the committee.
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According to PTAD’s statement, the committee, made up of representatives from both PTAD and the Budget Office, has been assigned the task of formulating immediate solutions to ensure pension entitlements are disbursed on time. Tinubu had earlier signed off on the record breaking N54.99tn budget, an increase from the N49.7tn initially submitted to the National Assembly. The spending plan earmarks N13.64tn for recurrent costs, N23.96tn for capital projects, N14.32tn for debt repayment, and N3.65tn for statutory transfers, while projecting a massive deficit of N13.08tn to be funded through domestic and external loans.
The budget assumptions rest on a crude oil benchmark of $75 per barrel, an output target of 2.06 million barrels per day, an average exchange rate of N1,400 to the dollar, and an inflation target of 15 per cent.
Earlier, the Federal Executive Council had approved the issuance of a N758bn bond aimed at clearing longstanding pension arrears, including accrued rights and increases. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had clarified that the Debt Management Office had been authorised to raise the funds necessary to wipe off the backlog.
The National Pension Commission noted that the N758bn bond is expected to benefit university professors, lower income earners, and other categories of pensioners left in limbo by the outstanding liabilities.
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