Ogun State Government Clears Eight-Year Pension and Gratuity Backlog
The Ogun State Government has achieved a significant milestone by clearing all pension and gratuity arrears owed to workers who retired between 2012 and 2020. This announcement reaffirms the administration's strong commitment to the welfare of retirees across the state.
Finance Commissioner Announces Historic Clearance
Economic Adviser and Commissioner for Finance, Dapo Okubadejo, made this important disclosure during a media parley organized by the Ogun State Ministry of Budget and Planning on Tuesday. Okubadejo explained that the backlog was specifically linked to the Defined Benefits Scheme, under which retirees receive their monthly pension payments.
"Since the inception of this administration, we have not missed a single month of pension payment. What we inherited were arrears tied to the Defined Benefits Scheme," Okubadejo emphasized, noting that Governor Dapo Abiodun's administration has maintained perfect pension payment records since assuming office.
Substantial Financial Commitments Revealed
The commissioner provided detailed financial data demonstrating the state's growing commitment to retiree welfare:
- Annual pension payments have increased dramatically from ₦6.7 billion in 2019 to ₦20 billion in 2025
- Projections indicate possible growth to ₦40 billion by 2029
- The state has paid ₦23.3 billion in gratuities covering retirees from 2012 to 2020
- An additional ₦32.8 billion has been allocated for outstanding gratuities of local government retirees inherited by the administration
Between 2019 and July 2, 2025, Ogun State disbursed ₦93.26 billion in pensions under the Defined Benefits Scheme and ₦94.78 billion to local government pensioners, showcasing substantial financial dedication to retiree welfare.
Future Commitments and Innovative Programs
Okubadejo assured that the remaining backlog would be completely cleared as Internally Generated Revenue (IGR) continues to improve. He noted that over 300 workers who retired in July 2025 are currently receiving six-month palliatives while their pension documentation is being finalized.
The commissioner also highlighted the newly approved Additional Pension Benefits (APB), describing it as "the first of its kind in Nigeria." He announced plans to pursue amendments to the state's pension law to formally integrate this innovative scheme, which represents a progressive approach to retiree welfare.
Impressive Economic Growth and Fiscal Management
On the state's broader fiscal outlook, Okubadejo revealed remarkable economic progress:
- The 2026 budget has increased from ₦1.054 trillion in 2025 to ₦1.668 trillion
- Ogun's economy has expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026
- Internally Generated Revenue grew from ₦50 billion in 2019 to ₦240 billion in 2025
- Projections indicate IGR could reach ₦512 billion this year
Strong Budget Performance and Sectoral Achievements
Commissioner for Budget and Planning, Olaolu Olabimtan, emphasized that the 2026 budget reflects strong fiscal reforms, noting an impressive 85 percent budget execution rate in 2024 and sustained financial stability throughout the state.
Other commissioners highlighted significant sectoral achievements during the media parley, including:
- Massive road construction projects across the state
- Increased healthcare funding and infrastructure development
- Rail extension plans to improve transportation networks
- Comprehensive education support programs
- Expanded housing projects benefiting residents statewide
This comprehensive clearance of pension and gratuity arrears represents a major achievement in Ogun State's commitment to public service and retiree welfare, backed by substantial economic growth and prudent fiscal management.
