Tinubu approves major overhaul of DBS Pension Scheme

President Bola Tinubu has approved a series of measures to improve the welfare of pensioners under the Defined Benefit Scheme (DBS), marking what officials describe as a significant milestone in Nigeria’s pension reform efforts.

The announcement was made in a statement by Olugbenga Ajayi, Head of Corporate Communications at the Pension Transitional Arrangement Directorate (PTAD). He noted that PTAD had earlier settled arrears related to the first pension increment of 20% to 28%, which took effect in January 2024.

Under the new approvals, which align with the President’s Renewed Hope Agenda, government will immediately implement an extra-budgetary allocation to enforce new pension rates for DBS pensioners.

The reforms also include:

Adoption of a pension harmonisation policy, to be included in the 2026 pension budget.

Health insurance coverage for all DBS pensioners under the National Health Insurance Scheme (NHIS).

Settlement of unpaid liabilities to NITEL/MTEL pensioners and other retirees from defunct parastatals in the 2026 budget proposal.

PTAD Executive Secretary, Tolulope Odunaiya, who had earlier submitted a formal request to the Presidency for emergency budgetary allocations, described the approvals as a “transformative moment for pension administration in Nigeria.”

She explained that the proposed reforms introduce a new pension rate of ₦32,000, along with incremental increases of 10.66% and 12.95% for pensioners from defunct and privatised agencies. Other measures include harmonisation of pension rates across all DBS pensioners and their automatic enrolment in NHIS.

“This move shows President Tinubu’s strong commitment to senior citizens’ welfare,” Odunaiya said. “We are grateful for his leadership in prioritising the welfare of our retirees.”

In June 2025, PTAD disbursed ₦8.6 billion in pension arrears to 148,625 eligible DBS pensioners across multiple sectors, reflecting the implementation of the ₦32,000 pension increment approved in 2024.

Ajayi said the disbursements were made across various pension departments.

Daily Watch Nigeria.