Ogun clears eight-year pension, gratuity backlog
Ogun State Government Clears Pension Arrears for Retirees
The Ogun State Government has announced the settlement of pension and gratuity arrears owed to employees who retired between 2012 and 2020, emphasizing its commitment to the welfare of retirees.
Dapo Okubadejo, the Economic Adviser and Commissioner for Finance, made the announcement Tuesday during a press conference organized by the Ogun State Ministry of Budget and Planning.
Okubadejo noted that the outstanding payments were associated with the Defined Benefits Scheme, under which retirees receive monthly pension disbursements. He emphasized that since taking office, Governor Dapo Abiodun’s administration has not defaulted on pension obligations.
“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 stated.
The commissioner highlighted a significant increase in annual pension payments, rising from ₦6.7 billion in 2019 to a projected ₦20 billion by 2025. He further indicated that projections might see the total reach ₦40 billion by 2029.
To date, the state has disbursed ₦23.3 billion in gratuities for retirees from 2012 to 2020 and an additional ₦32.8 billion in outstanding gratuities for local government retirees inherited by the current administration.
From 2019 until July 2, 2025, the state allocated ₦93.26 billion in pensions under the Defined Benefits Scheme and ₦94.78 billion for local government pensioners. Okubadejo assured that remaining arrears would be settled as the state’s Internally Generated Revenue (IGR) continues to improve. He added that more than 300 workers who retired in July 2025 are currently receiving six-month palliatives while their pension documentation is completed.
Additionally, Okubadejo introduced the newly approved Additional Pension Benefits (APB), marking it as the first of its kind in Nigeria. He indicated that there would be amendments to the state’s pension law to formally integrate the scheme.
Regarding the state’s fiscal outlook, Okubadejo reported an increase in the 2026 budget from ₦1.054 trillion in 2025 to ₦1.668 trillion, while Ogun’s economy is expected to grow from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026. He also noted that IGR has expanded from ₦50 billion in 2019 to ₦240 billion in 2025, with forecasts indicating ₦512 billion this year.
Olaolu Olabimtan, the Commissioner for Budget and Planning, remarked that the 2026 budget reflects robust fiscal reforms, citing an 85 percent budget execution rate in 2024 and the maintenance of financial stability.
Other commissioners highlighted sectoral achievements, including extensive road construction, increased funding for healthcare, plans for rail extensions, educational support programs, and expanded housing projects throughout the state.
