The Ogun State Government has cleared pension and gratuity arrears owed to workers who retired between 2012 and 2020, signalling a major fiscal milestone and reinforcing its commitment to retirees’ welfare.
The state’s Economic Adviser and Commissioner for Finance, Dapo Okubadejo, disclosed this during a media parley organised by the Ministry of Budget and Planning, stating that the backlog stemmed from the Defined Benefits Scheme inherited by the administration of Governor Dapo Abiodun.
Okubadejo maintained that since assuming office in 2019, the administration has not defaulted on monthly pension payments, describing the arrears as legacy liabilities. He revealed that annual pension payments rose from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections indicating a possible increase to ₦40 billion by 2029.
According to him, the government has 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. 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.
He added that more than 300 workers who retired in July 2025 are currently receiving six-month palliatives pending the completion of their pension documentation, assuring that the remaining backlog would be cleared as Internally Generated Revenue (IGR) continues to strengthen.
The commissioner also described the newly approved Additional Pension Benefits (APB) as the first of its kind in Nigeria, noting that amendments to the state’s pension law would be pursued to institutionalise the scheme.
On the broader fiscal outlook, Okubadejo said the 2026 budget increased from ₦1.054 trillion in 2025 to ₦1.668 trillion, while the state’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026. IGR, he noted, climbed from ₦50 billion in 2019 to ₦240 billion in 2025, with projections of ₦512 billion this year.
Also speaking, Commissioner for Budget and Planning Olaolu Olabimtan said the 2026 budget reflects deepening fiscal reforms, highlighting an 85 per cent budget execution rate in 2024 and sustained financial stability.
Other members of the cabinet pointed to sectoral gains, including road infrastructure expansion, increased healthcare funding, rail extension plans, education support initiatives and expanded housing projects — framing the pension clearance as part of a broader push to stabilise public finances while accelerating development.