Ogun Retirees to Get Up to 280% of Annual Salary as Govt Unveils Enhanced Pension Benefits

ABEOKUTA – Retirees in Ogun State are set to receive a significant financial boost following the launch of a new Additional Pension Benefit (APB) initiative, which guarantees payouts ranging from 116% to 280% of their final total annual emoluments. The move positions the state’s pension benefits far above the federal benchmark.

Governor Dapo Abiodun announced the new framework on Tuesday during the official presentation of cheques to retirees at the Oba’s Complex in Abeokuta. Represented by the Secretary to the State Government, Tokunbo Talabi, the governor explained that the new Contributory Pension Scheme (CPS) enhancement ensures between 70% and 80% of retiring workers will receive more than what was previously obtainable under the old gratuity system.

“While the Federal Government provides gratuity equivalent to 100% of a retiree’s final annual salary, Ogun State has not only met that benchmark but exceeded it,” Governor Abiodun stated. “Our minimum is 116%, going up to 280%, which is significantly higher. This means retirees will now receive improved and timely benefits, unlike in the past when gratuity payments were often delayed.”

The governor noted that his administration inherited substantial pension liabilities but has taken deliberate steps to address them. He added that under the new APB framework, retirees receive a one-off lump sum as Additional Pension Benefit, while their full pension contributions remain untouched with their Pension Fund Administrators (PFAs). This, he explained, results in higher monthly pension payments.

“Previously, about 25% of total pension savings would be taken as a lump sum. That deduction is now no longer necessary because the APB serves as the lump sum, leaving the full contributions to generate stronger monthly pensions,” he clarified.

The Head of Service, Kehinde Onasanya, hailed the initiative as a “game changer” that bridges the gap between the old Defined Benefit Scheme and the CPS, ensuring retirees receive immediate financial support upon exiting the service.

Providing context on the state’s pension evolution, the Chief Economic Adviser and Commissioner for Finance, Dapo Okubadejo, revealed the unsustainable trajectory of the old scheme. He noted that pension liabilities under the old system ballooned from ₦2 billion for about 8,198 retirees in 2011 to over ₦20 billion for more than 16,000 retirees by 2025. He added that the state inherited over ₦42 billion in unpaid pension liabilities as of 2019 but has since taken decisive steps to clear the backlog.

The event was well-received by labour unions and pensioners’ representatives. Ahmed Benco of the Nigeria Labour Congress and Akeem Lasisi of the Trade Union Congress described the APB as the first of its kind in the country, calling it a model for other states. The Chairman of the Nigeria Union of Pensioners, Waheed Oloyede, lauded the programme as a major step toward improving retirees’ welfare, while urging transparency in its implementation.

At the event, cheques ranging from ₦17 million to ₦22 million were presented to 111 beneficiaries in the first phase of disbursement. The computation is based on agreed rates applied to the retirees’ Total Annual Emolument (TAE).

The APB initiative follows concerns raised by stakeholders after the full implementation of the CPS in Ogun State on July 2, 2025, and was adopted after extensive consultations with organised labour, pension administrators, and government officials.

The Ogun State Government also highlighted its significant financial interventions in the sector to date, which include:

· ₦26.35 billion paid to offset outstanding gratuity liabilities.
· ₦5.89 billion remitted as arrears of CPS deductions and accrued returns.
· ₦500 million paid as death benefits.
· ₦3.19 billion in CPS remittances as of January 2026.

These measures, the government stated, underscore its commitment to transparency, accountability, and the long-term sustainability of the pension system, ensuring that retirees enjoy improved welfare and financial security.