Ogun clears retirees’ 8-year arrears of pensions and gratuities

*The Ogun State Government announces its clearance of arrears of pensions and gratuities owed workers, who retired from Service between 2012 and 2020

Isola Moses | ConsumerConnect

Reaffirming its commitment to the welfare of retirees in the state, the Ogun State Government (OGSG) has announced the clearance of arrears of pensions and gratuities owed workers who retired between 2012 and 2020.

Dapo Okubadejo, Economic Adviser and Commissioner for Finance, disclosed this Tuesday, February 17, 2026, during a media parley organised by the Ogun State Ministry of Budget and Planning.

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Okubadejo explained that the backlogs were linked to the Defined Benefits Scheme.

Under the scheme, retirees receive monthly pension payments.

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Okubadejo stressed that the present administration of Governor (Prince) Dapo Abiodun  of Ogun State has not defaulted on pension obligations since assuming office.

The Commissioner further stated: “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 possible increase to ₦40 billion by 2029.

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

Okubadejo disclosed that between 2019 and July 2, 2025, Ogun 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 the completion of their pension documentation.

The Commissioner also described the newly approved Additional Pension Benefits (APB) as the first of its kind in Nigeria.

Okubadejo explained 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.

The state IGR, he said, grew from ₦50 billion in 2019 to ₦240 billion in 2025, with projections of ₦512 billion this year.

Also speaking, the Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflected strong fiscal reforms, noting an 85 percent budget execution rate in 2024 and sustained financial stability.

Other commissioners highlighted sectoral achievements, including massive road construction, increased healthcare funding, rail extension plans, education support programmes, and expanded housing projects across the state.

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