The Ogun State Government has announced the clearance of pension and gratuity arrears owed to workers who retired between 2012 and 2020, reaffirming its commitment to the welfare of retirees.

The disclosure was made on Tuesday by the Economic Adviser and Commissioner for Finance, Dapo Okubadejo, during a media briefing organised by the Ogun State Ministry of Budget and Planning.

Okubadejo explained that the backlog was linked to the Defined Benefits Scheme, under which retirees receive monthly pensions, noting that the current administration of Governor Dapo Abiodun has consistently met its pension obligations since assuming office.

“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,” he said.

He revealed 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 said the state has 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.

Between 2019 and July 2025, ₦93.26 billion was disbursed under the Defined Benefits Scheme and ₦94.78 billion to local government pensioners.

He assured that the remaining backlog would be cleared as Internally Generated Revenue (IGR) continues to grow, adding that over 300 workers who retired in July 2025 are receiving six-month palliatives pending completion of their pension documentation.

Okubadejo 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 formally integrate the scheme.

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