Ogun Disburses N188bn in Pensions, Clears Eight-Year Gratuity Backlog
The Ogun State Government has announced the clearance of pension and gratuity arrears owed to workers who retired between 2012 and 2020, as part of what it described as sustained reforms to stabilise public finances and prioritise retirees’ welfare.
Speaking at a media parley organised by the Ministry of Budget and Planning, the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, said the present administration inherited significant arrears under the Defined Benefits Scheme but has maintained consistent monthly pension payments since 2019.
Global Mirror News reports that Okubadejo attributed the backlog to liabilities accumulated before the current administration took office, stressing that no pension payment has been missed under Governor Dapo Abiodun.
He disclosed that annual pension payments rose sharply from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections indicating the figure could climb to ₦40 billion by 2029 due to increasing obligations.
According to the Commissioner, the state has paid ₦23.3 billion in gratuities to retirees between 2012 and 2020. In addition, ₦32.8 billion was disbursed to clear outstanding gratuities owed to Local Government retirees inherited by the administration.
Providing a broader breakdown, Okubadejo revealed that between 2019 and July 2, 2025, the State paid ₦93.26 Billion in pensions under the Defined Benefits Scheme and ₦94.78 billion to Local Government pensioners — bringing total pension-related disbursements to over ₦188 billion within the period under review.
He assured that any remaining liabilities would be addressed as the State’s Internally Generated Revenue (IGR) continues to grow. Over 300 workers who retired in July 2025, he added, are currently receiving six-month palliatives pending the completion of their pension documentation.
On reforms, the Commissioner described the newly approved Additional Pension Benefits (APB) as a pioneering initiative in Nigeria’s public pension administration, noting that amendments to the State’s pension law would soon be pursued to formally integrate the scheme into the legal framework.
Global Mirror News further reports that Okubadejo highlighted improvements in the State’s fiscal performance. He said the 2026 budget increased from ₦1.054 trillion in 2025 to ₦1.668 trillion, while the size of Ogun’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.
The State’s IGR, he noted, rose from ₦50 Billion in 2019 to ₦240 Billion in 2025, with projections of ₦512 Billion for the current fiscal year.
Also speaking, the Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 appropriation reflects the impact of ongoing fiscal reforms, pointing to an 85 per cent budget execution rate recorded in 2024 as evidence of improved financial discipline and implementation capacity.
Other members of the State Executive Council outlined sectoral gains, including extensive road construction, expanded healthcare funding, rail extension initiatives, strengthened education support programmes, and increased housing development across the State.
