PTAD Disburses N18.96 Billion to Settle BEC Arrears for 3,958 Former PHCN Pensioners

The Pension Transitional Arrangement Directorate (PTAD) has disbursed a total of N18.96 billion to settle outstanding Back-End Computation (BEC) arrears owed to 3,958 eligible pensioners of the former Power Holding Company of Nigeria (PHCN) under the Defined Benefit Pension Scheme (DBS).

The final payment of N9.476 billion represents the outstanding 50% balance owed to the affected pensioners, following an initial disbursement of N9.482 billion in June 2026.

With the two payments combined, PTAD has now disbursed N18,958,199,952.27, completing the settlement of the BEC arrears for the affected group.

What you should know

Back-End Computation (BEC) arrears are pension adjustments arising from the computation and reconciliation of benefits owed to eligible pensioners.

For pensioners affected by the PHCN restructuring, the settlement is significant because the money represents outstanding pension benefits that had remained unpaid after their entitlements were initially established.

The payment therefore brings the affected pensioners closer to receiving their full benefits under the Defined Benefit Pension Scheme.

The final 50% payment completes the settlement

PTAD’s latest N9.476 billion payment represents the remaining 50% balance.

An earlier N9.482 billion was disbursed in June 2026, meaning the two instalments have now effectively completed the payment process for the 3,958 pensioners.

The combined amount of N18.96 billion represents the total BEC arrears settled under this particular payment exercise.

This is different from a regular monthly pension payment. The BEC payment is an outstanding liability being settled separately from normal pension obligations.

An average of about N4.79 million per pensioner

Based on the total disbursement and the 3,958 beneficiaries, the average amount paid works out to approximately N4.79 million per pensioner.

However, this is only an arithmetic average.

Individual pensioners would not necessarily receive the same amount because pension arrears are determined by each person’s entitlement, service history and applicable computation.

The figure nevertheless illustrates the scale of the payment and why the settlement represents a significant financial event for the beneficiaries.

Why PHCN pensioners are affected

The former Power Holding Company of Nigeria was created during the restructuring of Nigeria’s electricity sector before the sector’s unbundling and subsequent privatisation.

The restructuring resulted in pension obligations involving workers who were covered under the Defined Benefit Pension Scheme.

PTAD was established to administer the pension liabilities of employees of several defunct and privatised government entities under the DBS framework.

Consequently, settling outstanding obligations to former PHCN workers forms part of the broader process of managing legacy pension liabilities.

Defined Benefit Scheme differs from the Contributory Pension Scheme

The PHCN pensioners affected by this payment are beneficiaries of the Defined Benefit Pension Scheme, which operates differently from Nigeria’s Contributory Pension Scheme.

Under a Defined Benefit arrangement, pension benefits are generally determined according to established formulas linked to factors such as salary and years of service.

The Contributory Pension Scheme, by contrast, is based on accumulated contributions and investment returns in an individual’s Retirement Savings Account.

Understanding this distinction is important because the settlement of PHCN BEC arrears relates to legacy obligations under the older pension structure rather than the regular operation of the newer contributory system.

The payment provides financial relief to beneficiaries

For the affected pensioners, the settlement provides access to money that had already accrued as part of their pension entitlements.

Given the long-term nature of pension obligations, delayed payments can create significant financial pressure for retirees who depend primarily on pension income to meet living expenses.

The completion of the arrears therefore provides more than a one-off cash payment. It removes an outstanding liability from the individual pensioners’ benefit calculations.

The settlement also reduces outstanding pension liabilities

From the government’s perspective, resolving verified arrears reduces the stock of outstanding obligations owed to pensioners under legacy schemes.

Clearing these liabilities can make pension administration more predictable and reduce the number of unresolved claims requiring future reconciliation.

However, the settlement of one category of arrears does not mean all pension-related liabilities across the wider public sector have been eliminated.

Different groups of pensioners can have separate entitlement, verification and computation issues.

Why pension arrears matter for the wider economy

Large pension payments can also have an economic effect because retirees are likely to spend a significant portion of their income on household needs.

The money can flow into areas such as food, healthcare, housing, transportation and other everyday expenses.

This means that clearing verified pension arrears can provide a short-term boost to household liquidity among beneficiaries.

The broader economic impact, however, depends on the size and timing of such payments relative to overall government expenditure.

What pensioners should watch

For beneficiaries of legacy pension schemes, the key issues remain:

• Verification: Ensuring pension records and beneficiary information are accurate.
• Computation: Confirming that benefits are calculated using the appropriate entitlement rules.
• Arrears settlement: Tracking outstanding balances that have been approved for payment.
• Regular pension payments: Distinguishing arrears settlements from normal monthly pension payments.
• Administrative updates: Following official communications regarding unresolved claims or additional verification exercises.

The bigger picture

The N18.96 billion settlement marks the completion of the BEC arrears payment exercise for 3,958 former PHCN pensioners covered by the latest disbursement.

For the beneficiaries, the final N9.476 billion payment means the outstanding 50% balance has now been settled following the first instalment in June.

The development also highlights the continuing process of resolving pension obligations inherited from Nigeria’s older public-sector and state-owned enterprise structures.

While the payment does not eliminate every legacy pension obligation in the country, completing a defined arrears settlement provides greater certainty for the affected pensioners and removes another outstanding liability from the administration of the Defined Benefit Pension Scheme.