The Federal Government has proposed a total allocation of ₦1.38 trillion for pensions, gratuities, and other retirement benefits in the 2026 Appropriation Bill, underscoring the scale of its obligations to current and former public servants.
Details of the budget show that the funds will cover retirees across ministries, departments, and agencies (MDAs), including the civil service, military, security agencies, parastatals, and federal universities.
A breakdown of the proposal indicates that the Office of the Head of the Civil Service of the Federation will receive ₦94.54 billion to cover civilian pensions, gratuities, pension administration costs, and outstanding unfunded liabilities. Within this amount, civil service pensions alone account for ₦60.34 billion, while arrears arising from pension increases approved in 2024 are estimated at ₦30.58 billion.
Military retirees account for the largest single allocation, with ₦486.04 billion set aside for pensions and gratuities. The provision includes ₦130.38 billion for anticipated retirements, ₦237.25 billion for routine pension and gratuity payments, ₦98.53 billion for death benefits, as well as administrative expenses. Additional funding has also been made for medical retirees and outstanding arrears dating back to 2019.
Other security-related allocations include ₦28.61 billion for the Department of State Services, ₦23.54 billion for the Nigeria Intelligence Agency, ₦18.53 billion for police pensions, and ₦18.41 billion for the Customs, Immigration and Prisons Pension Office.
Federal parastatals and universities are collectively allocated ₦207.81 billion, while the National Pension Commission will manage ₦427.04 billion for gratuities, pension protection, and consequential adjustments.
Further pension-related commitments, including benefits for retired heads of service, former professors, EFCC retirees, and group life insurance for federal workers, are captured under service-wide votes estimated at ₦2.19 trillion.
The pension allocations form a substantial component of the 2026 budget, reflecting the government’s effort to address arrears, meet statutory obligations, and improve welfare for retirees.
