Ogun clears 2012-2020 pension arrears, pays N23.3bn in gratuities
The Ogun State Government has announced the clearance of pension and gratuity arrears owed to workers who retired between 2012 and 2020, reaffirming its commitment to retirees’ welfare.
The Economic Adviser and Commissioner for Finance, Dapo Okubadejo, disclosed this during a media parley organised by the Ogun State Ministry of Budget and Planning.
Okubadejo explained that the backlog was linked to the Defined Benefits Scheme, under which retirees receive monthly pensions. He stressed that the administration of Governor Dapo Abiodun has not defaulted on pension payments since assuming office.
According to him, annual pension payments rose from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections indicating a possible increase to ₦40 billion by 2029.
He revealed that the state has paid ₦23.3 billion in gratuities covering retirees from 2012 to 2020, as well as ₦32.8 billion in outstanding gratuities for local government retirees inherited by the administration.
Between 2019 and July 2, 2025, the state disbursed ₦93.26 billion in pensions under the Defined Benefits Scheme and ₦94.78 billion to local government pensioners, while over 300 workers who retired in July 2025 are receiving six-month palliatives pending documentation.
The commissioner described the newly approved Additional Pension Benefits (APB) as the first of its kind in Nigeria and said amendments to the state’s pension law would be pursued to formally integrate the scheme.
On the fiscal outlook, Okubadejo noted that the 2026 budget increased to ₦1.668 trillion from ₦1.054 trillion in 2025, while the state’s economy expanded significantly.
The Commissioner for Budget and Planning, Olaolu Olabimtan, added that the 2026 budget reflects strong reforms, citing an 85 per cent execution rate in 2024 and sustained sectoral investments across infrastructure, healthcare, education and housing.
