The Ogun State Government has cleared pension and gratuity arrears owed to workers who retired between 2012 and 2020, reaffirming its commitment to the welfare of retirees.
The Economic Adviser and Commissioner for Finance, Mr. Dapo Okubadejo, announced this during a media briefing at the Ogun State Ministry of Budget and Planning. He explained that the backlog was linked to the Defined Benefits Scheme, under which retirees receive monthly pensions.
“Since the inception of this administration, we have not missed a single month of pension payment. What we inherited were arrears tied to the Defined Benefits Scheme,” Okubadejo said.
According to him, the state has paid ₦23.3 billion in gratuities covering retirees from 2012 to 2020. It also settled ₦32.8 billion in outstanding gratuities for local government retirees inherited by the administration.
Annual pension payments have risen from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections indicating a possible increase to ₦40 billion by 2029.
Okubadejo assured retirees that the remaining backlog would be cleared as Internally Generated Revenue (IGR) continues to grow. He added that more than 300 workers who retired in July 2025 are currently receiving six-month palliatives pending the completion of their pension documentation.
He further disclosed that the newly approved Additional Pension Benefits (APB) scheme, described as the first of its kind in Nigeria, will be formally integrated into the state’s pension framework through amendments to the existing law.
Providing broader fiscal context, Okubadejo said the 2026 budget increased from ₦1.054 trillion in 2025 to ₦1.668 trillion. He noted that Ogun’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.
Internally Generated Revenue also grew significantly, from ₦50 billion in 2019 to ₦240 billion in 2025, with projections of ₦512 billion for the current year.
