Okubadejo Hails Abiodun’s Vision As Ogun Disburses Additional Pension Benefits To Retirees
The Ogun State Government has significantly improved retirees’ benefits under the Contributory Pension Scheme (CPS) through the newly introduced Additional Pension Benefit (APB) initiative, offering retirees between 116% and 280% of their Total Annual Emoluments (TAE).
Speaking at the official presentation of cheques to retirees at the Oba’s Complex on Tuesday, 17th of March, 2026, the Chief Economic Adviser and Commissioner for Finance in Ogun state, Otunba Dapo Okubadejo, traced the evolution of pension administration in the state. He noted that the CPS, introduced in 2008, faced funding challenges that eroded public trust, while pension liabilities under the old Defined Benefit Scheme surged from ₦2 billion for 8,198 retirees in 2011 to over ₦20 billion for more than 16,000 retirees by 2025.
Okubadejo revealed that the state inherited over ₦42 billion in unpaid pension liabilities as of 2019 but deliberate measures have been taken to clear the backlog and restore confidence. He explained that the APB provides a one-off lump sum payment at retirement, leaving full pension contributions intact with Pension Fund Administrators (PFAs) to boost monthly pension payouts.
“Previously, about 25% of total pension savings were withdrawn as a lump sum. With the APB, this deduction is no longer necessary, allowing retirees to enjoy improved monthly pensions while receiving immediate financial support upon retirement,” Okubadejo stated.
Governor Dapo Abiodun, represented by the Secretary to the State Government, Tokunbo Talabi, emphasised that the initiative ensures 70–80% of retiring workers receive higher benefits than under the previous gratuity scheme, which is benchmarked at 100% of a retiree’s final annual salary. Under the new framework, benefits now start at 116% and can increase to as high as 280%, depending on the number of years of service.
The APB initiative follows extensive consultations with organised labour, pension administrators, and government officials, designed to bridge the gap between the CPS and the former Defined Benefit Scheme. Labour leaders, including Ahmed Benco of the Nigeria Labour Congress and Akeem Lasisi of the Trade Union Congress, praised the scheme as a model fo. At the same time, states, while the Nigeria Union of Pensioners called it a major step toward improving retiree welfare.
At the event, cheques ranging from ₦17 million to ₦22 million were presented to 111 beneficiaries in the first phase of disbursement, based on agreed rates applied to TAE. Okubadejo highlighted that the state has also made ₦26.35 billion in payments to offset outstanding gratuity liabilities, remitted ₦5.89 billion as CPS arrears and accrued returns, paid ₦500 million as death benefits, and contributed ₦3.19 billion in CPS remittances as of January 2026.
“This initiative is a testament to our commitment to transparency, accountability, and the long-term sustainability of the pension system,” Okubadejo said, adding that the government will continue to prioritise retirees’ welfare as a moral and strategic obligation.
