The management of Nigeria’s Defined Benefits Scheme (DBS), commonly referred to as the “old pension scheme,” was marred by mismanagement, allegations of corruption, and widespread neglect of pensioners’ welfare before the establishment of the Pension Transitional Directorate (PTAD) in 2013. Reports of pensioners enduring severe hardship, including sleeping in government offices and waiting for long periods to access their pensions, highlighted the severity of the situation. Many pensioners faced delays in receiving their payments, were owed pension arrears, or had relatives waiting years for death benefits. In some cases, pensioners had to pay bribes to receive what was due to them.
In response to these issues, PTAD was created to streamline and manage pensions under the DBS for those who did not transition to the contributory pension scheme that began in 2004. As an agency of the federal government, PTAD was tasked with consolidating and reforming pension administration. However, PTAD inherited a system riddled with challenges, including a lack of reliable data on pensioners, duplicate records, and an overwhelming number of complaints and unresolved cases. The agency also had to address a significant backlog of pension arrears and death benefits, along with serious administrative issues such as disorganized records, poor staff capacity, and inadequate office infrastructure.
At its inception, PTAD faced a daunting task, inheriting over 50,000 complaints and 30,000 pensioners who were qualified but not on the payroll. The agency’s leadership, including Executive Secretary Dr. Chioma Ejikeme, acknowledged the complex nature of the pension schemes it inherited, which were characterized by manual errors and miscalculations. PTAD also encountered difficulties with poor pension file management, which resulted in lost records and damaged files. Despite these challenges, PTAD has worked to address the systemic issues and improve pension administration, bringing reforms that have significantly improved the situation for pensioners. Further efforts to modernize the system and resolve outstanding issues are ongoing.
