Ogun state retirees set to receive pension payouts nearly triple their current amount under newly introduced plan, according to Governor Abiodun

The Ogun State government has made a significant announcement, revealing that retirees in its civil and public service will receive substantially higher benefits under the Contributory Pension Scheme, thanks to the introduction of the Additional Pension Benefit initiative, which offers between 116 per cent and 280 per cent of Total Annual Emoluments.

This development was disclosed by Governor Dapo Abiodun on Tuesday during the official presentation of cheques to retirees at the Oba’s Complex, where he was represented by the Secretary to the State Government, Tokunbo Talabi.

The governor explained that the new arrangement will see between 70 and 80 per cent of retiring workers receive higher benefits than what was previously obtainable as gratuity, with the state exceeding the Federal Government's benchmark of 100 per cent by approving a minimum of 116 per cent, rising to as high as 280 per cent, depending on years of service.

According to Governor Abiodun, the new initiative means that retirees will now receive improved and timely benefits, with the state's minimum benefit set at 116 per cent, significantly higher than the 100 per cent benchmark, and rising to as high as 280 per cent.

The governor noted that his administration inherited substantial pension and gratuity liabilities but has since taken deliberate steps to address them comprehensively, including settling outstanding obligations and ensuring that retirees receive returns on delayed remittances.

Under the APB framework, retirees will now receive a one-off lump sum as Additional Pension Benefit, while their full pension contributions remain intact with Pension Fund Administrators, resulting in improved monthly pension payments, unlike in the past when about 25 per cent of total pension savings would be taken as a lump sum.

Governor Abiodun reaffirmed that despite competing fiscal demands, his administration has prioritised retirees’ welfare, describing their well-being as a moral obligation, and has taken steps to ensure that they receive improved benefits and financial security.

The Head of Service, Kehinde Onasanya, described the initiative as a “game changer” that bridges the gap between the old Defined Benefit Scheme and the CPS, ensuring retirees receive immediate financial support upon exit from service.

Chief Economic Adviser and Commissioner for Finance, Dapo Okubadejo, traced the evolution of pension administration in the state, noting that the CPS, introduced in 2008, faced funding challenges that eroded public trust, with pension liabilities under the old Defined Benefit Scheme rising sharply from ₦2 billion for about 8,198 retirees in 2011 to over ₦20 billion for more than 16,000 retirees by 2025.

Okubadejo added that the state inherited over ₦42 billion in unpaid pension liabilities as of 2019 but has since taken decisive steps to clear the backlog and restore confidence, with the government paying out significant amounts to offset outstanding liabilities.

Labour leaders, including Ahmed Benco of the Nigeria Labour Congress and Akeem Lasisi of the Trade Union Congress, commended the initiative, describing it as the first of its kind in the country and a model for other states to follow.

The Chairman of the Nigeria Union of Pensioners, Waheed Oloyede, lauded the programme as a major step toward improving retirees’ welfare, while calling for transparency in its implementation to ensure that all beneficiaries receive their due benefits.

Representatives of Pension Fund Administrators and the National Pension Commission also described the scheme as a bold and innovative reform that strengthens retirement security and provides a sustainable mechanism for addressing gratuity-related concerns.

Cheques ranging from ₦17 million to ₦22 million were presented to 111 beneficiaries in the first phase of disbursement, with the computation based on agreed rates applied to Total Annual Emolument.

The APB initiative follows concerns raised by stakeholders after the full implementation of the CPS in Ogun State on July 2, 2025, and was subsequently adopted after extensive consultations involving organised labour, pension administrators, and government officials.

Under the framework, the APB is structured as a one-off payment at retirement, while balances in retirees’ Retirement Savings Accounts are preserved to enhance their monthly pensions, providing a more sustainable and secure retirement income.

The Ogun State Government has also recorded significant interventions in the pension sector, including ₦26.35 billion paid to offset outstanding gratuity liabilities, ₦5.89 billion remitted as arrears of CPS deductions and accrued returns, ₦500 million paid as death benefits, and ₦3.19 billion in CPS remittances as of January 2026.