PTAD Laments Inadequate Budgetary Provision For Pension Arrears Funding
The Pension Transitional Arrangement Directorate (PTAD) has raised concerns over insufficient provisions for pension arrears in the recently signed 2025 national budget, warning that the gap could jeopardise the well-being of retired civil servants.
This was disclosed in a statement issued on Friday by PTAD’s Head of Corporate Communications, Mr Olugbenga Ajayi.
According to the statement, the Executive Secretary of PTAD, Ms. Tolulope Odunaiya, voiced her concerns during a courtesy visit to the Director-General of the Budget Office of the Federation, Mr Tanimu Yakubu, in Abuja.
Odunaiya noted that although the 2025 budget increased to a record N54.99tn, it still fails to adequately account for accumulated pension liabilities.
“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,” the statement read.
She added that these shortfalls in budgetary allocations directly affect pensioners’ livelihoods, many of whom rely solely on their monthly entitlements for survival. To address the issue, she proposed the establishment of a joint committee to tackle the persistent challenges.
Responding, Yakubu welcomed the proposal and formally constituted the committee. The newly formed body includes representatives from both PTAD and the Budget Office and has been tasked with formulating actionable strategies to ensure that pension obligations are met without delays.
President Bola Tinubu had signed the 2025 Appropriation Act into law, raising the budget from an initial N49.7tn proposal to N54.99tn, the highest in Nigeria’s history.
The fiscal plan includes N13.64tn in recurrent spending, N23.96tn for capital projects, N14.32tn for debt servicing, and N3.65tn for statutory transfers, with a projected deficit of N13.08tn to be financed through domestic and foreign borrowing.
The budget is based on key assumptions, including a crude oil benchmark of $75 per barrel, production of 2.06 million barrels per day, an exchange rate of N1,400 to the dollar, and an inflation target of 15 per cent.
To address outstanding pension liabilities, the Federal Executive Council previously approved the issuance of a ₦758bn bond to be managed by the Debt Management Office. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the bond would cover accrued rights and approved pension increases.
The National Pension Commission has said that the bond would benefit university professors, low-income earners, and other affected pensioners under the Contributory Pension Scheme.
PTAD Laments Inadequate Budgetary Provision For Pension Arrears Funding is first published on The Whistler Newspaper
