Ogun state government offsets 8-year pension, gratuity Backlog
The Ogun State Government has cleared outstanding pension and gratuity arrears owed workers who retired between 2012 and 2020, recalling that the backlog was linked to the Defined Benefits Scheme, under which retirees receive monthly pension payments.
Penpushing reports that the Economic Adviser and Commissioner for Finance, Dapo Okubadejo, made this known on Tuesday at a media parley organised by the Ogun State Ministry of Budget and Planning.
The Commissioner speaking to journalists at Olusegun Osoba press centre, Oke-Mosan, Abeokuta equally reaffirmed the Governor Dapo Abiodun-led administration commitment to the welfare of retirees.
Penpushing further reports that Okubadejo, stated that the present administration has not defaulted on pension obligations since assuming office, emphasizing that it has not missed a single month of pension payment.
“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 added.
Penpushing also reports that he explained that annual pension payments rose from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections showing a possible increase to ₦40 billion by 2029.
The Commissioner in same vein said the state had so far 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.
Penpushing reports that he disclosed that 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.
The Commissioner boasted that the remaining backlog would be cleared as Internally Generated Revenue (IGR) continues to improve, pointing out that over 300 workers who retired in July 2025 are currently receiving six-month palliatives pending the completion of their pension documentation.
Penpushing further reports that he described the newly approved Additional Pension Benefits (APB) as the first of its kind in Nigeria, adding that amendments to the state’s pension law would be pursued to formally integrate the scheme.
The Commissioner on the state’s fiscal outlook, disclosed that the 2026 budget increased from ₦1.054 trillion in 2025 to ₦1.668 trillion, while Ogun’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.
Penpushing also reports that Okubadejo added that Internally Generated Revenue (IGR) grew from ₦50 billion in 2019 to ₦240 billion in 2025, with projections of ₦512 billion this year.
The Commissioner for Budget and Planning, Olaolu Olabimtan, in his contributions said the 2026 budget reflects strong fiscal reforms, pointing out that an 85 per cent budget execution rate in 2024 and sustained financial stability.
Penpushing reports that in similar vein, other commissioners at the media parley highlighted sectoral achievements, including massive road construction, increased healthcare funding, rail extension plans, education support programmes, and expanded housing projects across the state.
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