The Ogun State Government has released N5.83 billion to settle gratuity and additional pension benefits for retirees, bringing its total pension related expenditure since May 2019 to N157.9 billion.
Olanrewaju Saka, the state’s Head of Service, disclosed this in a statement on the latest allocation approved at the September 24, 2026 meeting of the Joint Accounts Allocation Committee. According to Saka, N4.9 billion from the latest release will be used to pay gratuity to local government pensioners who retired in 2022 and retirees of the State Universal Basic Education Board who left service in 2021. The remaining N918.6 million has been allocated as additional pension benefits to eligible retirees under the Contributory Pension Scheme.
Saka said the latest payment was part of the state government’s efforts to settle outstanding retirement obligations and improve the welfare of pensioners. He added that the government had released another N4.12 billion in additional pension benefits to retirees under the Contributory Pension Scheme since the beginning of 2026.
The Head of Service also provided a breakdown of the state’s pension related expenditure since May 2019. He said N29.12 billion had been paid as gratuity to 7,390 beneficiaries, while N105.39 billion had been spent on pension payments for 16,420 beneficiaries during the period. The state also committed N7.78 billion to Contributory Pension Scheme deductions for 29,883 beneficiaries between July 2025 and August 2026.
In addition, N3.33 billion was spent on accrued pension rights for 2,567 beneficiaries, while N5.04 billion was used to settle arrears of Contributory Pension Scheme deductions. Saka said the government also paid N1.35 billion as returns on investment, while N584.85 million was spent on death benefits and other payments for 160 beneficiaries. The state further provided N1.32 billion in palliatives and paid about N4 billion in additional pension benefits to 709 beneficiaries.
Saka clarified that the N45.5 billion figure previously cited by the government represented the amount committed specifically to gratuity payments for local government and SUBEB retirees since 2019. He explained that the broader N157.9 billion figure covered all categories of pension related payments made by the state during the same period.
The Ogun government said it would continue to meet its pension obligations and use available resources to address outstanding retirement benefits. The latest payment comes as the state continues to implement measures aimed at improving retirement benefits under the Contributory Pension Scheme. The Additional Pension Benefit was introduced to help address the difference between what some retirees would have received under the former Defined Benefit Scheme and their benefits under the current pension system.
Saka said the government remained committed to improving the welfare of retirees while ensuring that pension obligations were handled in a sustainable manner.
