The Ogun State Government has announced the payment of pension and gratuity arrears owed to workers who retired between 2012 and 2020, as part of what it termed as long-term reforms to strengthen public finances and emphasise retiree care.
Speaking at a media event hosted by the Ministry of Budget and Planning, the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo stated that the current administration inherited significant arrears under the Defined Benefits Scheme but has maintained consistent monthly pension payments since 2019.
According to Okubadejo, he said that the backlog to liabilities accumulated before the current administration assumed office, emphasising that no pension payments have been missed under Governor Dapo Abiodun.
Annual pension payments increased from ₦6.7 billion in 2019 to ₦20 billion in 2025, and are expected to reach ₦40 billion by 2029 due to rising responsibilities.
Between 2012 and 2020, the state provided retirees with ₦23.3 billion in gratuities, as reported by the Commissioner.
Additionally, ₦32.8 billion was disbursed to settle outstanding gratuities owing to Local Government retirees inherited by the administration.
Okubadejo said 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, totalling over ₦188 billion in pension-related payments.
He pledged that any outstanding liabilities will be resolved when the State's Internally Generated Revenue (IGR) increased.
He noted that more than 300 people who retired in July 2025 are currently receiving six-month palliative care while their pension documentation is being completed.
Regarding changes, the Commissioner hailed the newly approved Additional Pension Benefits (APB) as a trailblazing initiative in Nigeria's public pension administration, stressing that amendments to the State's pension law will be undertaken shortly to legally integrate the plan into the legal framework.
According to Okubadejo, he emphasised advances in the state's fiscal performance. The budget for 2026 went from ₦1.054 trillion in 2025 to ₦1.668 trillion, and Ogun's economy grew from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.
He highlighted that the State's IGR increased from ₦50 Billion in 2019 to ₦240 Billion in 2025, with forecasts of ₦512 Billion for the current fiscal year.
Also speaking, the Commissioner for Budget and Planning, Olaolu Olabimtan stated that the 2026 appropriation reflects the impact of continuing fiscal reforms, citing an 85% budget execution rate in 2024 as proof of better financial discipline and implementation capacity.
Other members of the State Executive Council highlighted sectoral successes such as substantial road construction, higher healthcare financing, rail expansion initiatives, strengthened education assistance programs, and increased housing development throughout the state.
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