The Ogun State Government has cleared outstanding pension and gratuity arrears owed to workers who retired between 2012 and 2020, underscoring what officials describe as a sustained drive to restore fiscal stability and protect retirees’ welfare.
At a media briefing organised by the Ministry of Budget and Planning, the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, said the administration of Governor Dapo Abiodun inherited substantial liabilities under the Defined Benefits Scheme but has maintained uninterrupted monthly pension payments since 2019.
Okubadejo explained that the backlog stemmed from obligations accumulated prior to the current Government, stressing that no pension payments have been missed since the administration assumed office.
He disclosed that annual pension outlays increased from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections suggesting the figure may rise to ₦40 billion by 2029 due to expanding obligations.
Detailing the payments made so far, the Commissioner said ₦23.3 billion was paid in gratuities to retirees between 2012 and 2020, while ₦32.8 billion was used to settle inherited gratuity arrears owed to Local Government Retirees.
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, bringing total pension-related payments within the period to over ₦188 billion.
Okubadejo assured that outstanding liabilities would continue to be addressed as Internally Generated Revenue improves. He added that more than 300 workers who retired in July 2025 are currently receiving six-month palliative payments pending the completion of their pension documentation.
On policy reforms, he described the newly approved Additional Pension Benefits (APB) as a groundbreaking initiative in Nigeria’s public sector pension framework, noting that the State would amend its pension law to formally institutionalise the scheme.
The Commissioner highlighted broader fiscal gains, revealing that the 2026 budget rose from ₦1.054 trillion in 2025 to ₦1.668 trillion. He added that Ogun’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.
According to him, the State’s IGR climbed from ₦50 billion in 2019 to ₦240 billion in 2025, with projections placing it at ₦512 billion this year.
Also speaking, the Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflects deepening fiscal reforms, citing an 85 per cent budget implementation rate in 2024 as evidence of strengthened financial management.
Other Commissioners outlined achievements across key sectors, including extensive road construction, improved healthcare funding, rail expansion initiatives, enhanced education support programmes, and expanded housing delivery across the State.
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