Jubilations as Ogun Govt Finally Pays Long Owed Pension, Gratuity
- The Ogun state government announced that pension and gratuity arrears owed to workers who retired between 2012 and 2020 had been fully cleared
- Finance Commissioner Dapo Okubadejo said the backlog was inherited under the Defined Benefits Scheme, while pension payments continued without default since the current administration took office
- The state disclosed major growth in pension spending, Internally Generated Revenue and overall budget size alongside the clearance of retiree liabilities
The Ogun State Government has announced that it has cleared pension and gratuity arrears owed to workers who retired between 2012 and 2020.
Officials said the move closed an eight-year backlog and reaffirmed the administration’s focus on the welfare of retirees.
Source: Twitter
The disclosure was made on Tuesday, February 17 by the state’s Economic Adviser and Commissioner for Finance, Dapo Okubadejo, during a media parley organised by the Ogun State Ministry of Budget and Planning.
Ogun clears pension, gratuity backlog
In a statement made available to Legit.ng, Okubadejo explained that the arrears were connected to the Defined Benefits Scheme, under which retirees receive monthly pension payments. He said the current administration inherited the backlog but has maintained consistency in pension payments since taking 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 noted that annual pension obligations had increased significantly over the years, rising from N6.7 billion in 2019 to N20 billion in 2025. Projections, according to him, indicate that the figure could reach N40 billion by 2029 as the retiree population grows.
Gratuity payments and revenue outlook
The finance commissioner disclosed that the state had paid N23.3 billion in gratuities to retirees from 2012 to 2020. He added that N32.8 billion in outstanding gratuities for local government retirees was also inherited by the administration.
Between 2019 and July 2, 2025, Okubadejo said the state disbursed N93.26 billion in pensions under the Defined Benefits Scheme and N94.78 billion to local government pensioners. He assured that the remaining backlog would be addressed as Internally Generated Revenue improves.
He said over 300 workers who retired in July 2025 were currently receiving six-month palliatives while their pension documentation was being finalised.
Source: Facebook
New pension benefits and budget growth
Okubadejo described the newly approved Additional Pension Benefits as the first of its kind in Nigeria. He said amendments to the state’s pension law would be pursued to formally integrate the scheme.
On fiscal performance, he said the 2026 budget increased from N1.054 trillion in 2025 to N1.668 trillion. Ogun’s economy, he added, expanded from N3.5 trillion in 2019 to N18.96 trillion in 2026, while Internally Generated Revenue rose from N50 billion to N240 billion within the same period.
Also speaking, the Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflected sustained reforms and an 85 percent execution rate recorded in 2024.
Other commissioners highlighted progress in roads, healthcare, education, rail projects and housing across the state under Governor Dapo Abiodun.
TASUED becomes federal university
Earlier, Legit.ng reported that the federal government and the Ogun state government had concluded the transfer of Tai Solarin University of Education, Ijagun, to federal ownership, formalising the process with the signing of a Memorandum of Understanding during the institution’s 17th convocation ceremony.
The agreement officially changed the status of the institution to Tai Solarin Federal University of Education, placing it within the federal university system.
Source: Legit.ng
