₦airaland Forum

The Government of Ogun State in Nigeria has announced clearance of pension and gratuity arrears owed workers who retired between 2012 and 2020.

Mr. Oladapo Abdul-Rahaman Okubadejo, Economic Adviser and Commissioner for Finance in the state, announced this on Tuesday 17 February 2026 during a media session organised by the Ogun State Ministry of Budget and Planning.

Okubadejo said the backlog was linked to the Defined Benefits Scheme, under which retirees receive monthly pension payments, noting that the present administration of Governor Dapo Abiodun has not defaulted on pension obligations since assuming office:

“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.”

According to him, annual pension payments rose from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections showing a potential rise to ₦40 billion by 2029.

He added that the state had so far paid ₦23.3 billion in gratuities covering retirees from 2012 to 2020 plus ₦32.8 billion in outstanding gratuities for local government retirees inherited by the administration.

Okubadejo added that between 2019 and 2 July 2025, the state disbursed ₦93.26 billion in pensions under the Defined Benefits Scheme and ₦94.78 billion to local government pensioners.

He assured that the remaining backlog would be cleared as Internally Generated Revenue (IGR) continues to improve, noting that over 300 workers who retired in July 2025 are currently receiving six-month palliatives pending completion of their pension documentation.

The commissioner also described the newly approved Additional Pension Benefits (APB) as the first of its kind in Nigeria, adding that amendments to the state’s pension law would be pursued to formally integrate the scheme.

On the state’s fiscal outlook, Okubadejo revealed that the 2026 budget increased from ₦1.054 trillion in 2025 to ₦1.668 trillion, while Ogun’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.

He added that IGR grew from ₦50 billion in 2019 to ₦240 billion in 2025, with a projection of ₦512 billion for this year.




SOURCE
https://x.com/NaijaphiliaBlog/status/2023888962931323068