FG settles NITEL, PHCN, bank workers’ N39bn pension liabilities

The Nigerian Federal Government has paid over N39 billion (approximately $50 million) in inherited pension liabilities for former workers of NITEL, PHCN, and several banks. This fulfills a commitment by President Bola Tinubu to clear long-standing pension arrears that have been a source of social unrest and financial hardship for thousands of retirees. The payment covers liabilities from the privatization of state-owned enterprises and the liquidation of distressed banks. The government has not disclosed the exact number of beneficiaries or the timeline for future payments. This move is part of broader efforts to address fiscal legacy issues and improve public trust.

Global Impact

Economically, the settlement removes a small but persistent fiscal overhang for Nigeria, potentially improving investor sentiment toward Nigerian sovereign debt. Socially, it alleviates hardship for thousands of retirees, reducing the risk of protests.