Ogun Retirees To Earn Up To 280% Benefits Under New Pension Scheme — Dapo Abiodun

March 17, 2026 Victor Oriola

The Ogun State Government has announced that retirees in its civil and public service will earn significantly higher benefits under the Contributory Pension Scheme (CPS), following the introduction of the Additional Pension Benefit (APB) initiative, which offers between 116 per cent and 280 per cent of Total Annual Emoluments (TAE).

Governor Dapo Abiodun disclosed this on Tuesday during the official presentation of cheques to retirees at the Oba’s Complex.

Ogun Puts Smiles on Faces of Retirees L–R: A labour leader with the Trade Union Congress; Omolara Sansa, State Chairman, Trade Union Congress; Akeem Lasisi; Chief Economic Adviser and Commissioner for Finance, Dapo Okubadejo; representative of the Governor of Ogun State, Dapo Abiodun, CON, and Secretary to the State Government, Tokunbo Talabi; Head of Service, Kehinde Onasanya; during the official presentation of cheques for Additional Pension Benefits (APB) to Olaifa Idowu Akano and other retirees under the Contributory Pension Scheme (CPS) at the Oba’s Complex on Tuesday.

Represented by the Secretary to the State Government, Tokunbo Talabi, the governor said between 70 and 80 per cent of retiring workers would receive higher benefits under the new arrangement than what was previously obtainable as gratuity.

He explained that while the Federal Government provides gratuity equivalent to 100 per cent of a retiree’s final annual salary, Ogun State has exceeded this benchmark by approving a minimum of 116 per cent, rising to as high as 280 per cent, depending on years of service.

“What this means is that, unlike in the past when gratuity payments were delayed, retirees will now receive improved and timely benefits. Our minimum is 116 per cent, going up to 280 per cent, which is significantly higher than the 100 per cent benchmark,” he said.

Governor Abiodun noted that his administration inherited substantial pension and gratuity liabilities but has since taken deliberate steps to address them comprehensively.

According to him, beyond settling outstanding obligations, the government ensured that retirees received returns on delayed remittances, thereby enhancing the value of their entitlements.

He further explained that under the APB framework, retirees now receive a one-off lump sum as Additional Pension Benefit, while their full pension contributions remain intact with Pension Fund Administrators (PFAs), resulting in improved monthly pension payments.

“Previously, about 25 per cent of total pension savings would be taken as a lump sum. Now, that deduction is no longer necessary, as the APB serves as the lump sum, leaving the full contributions to generate stronger monthly pension payments,” he added.

The governor reaffirmed that despite competing fiscal demands, his administration has prioritised retirees’ welfare, describing their well-being as a moral obligation.

In his remarks, the Head of Service, Kehinde Onasanya, described 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 exit from service.

Also speaking, the Chief Economic Adviser and Commissioner for Finance, Dapo Okubadejo, traced the evolution of pension administration in the state, noting that the CPS, introduced in 2008, faced funding challenges that eroded public trust.

He revealed that pension liabilities under the old Defined Benefit Scheme rose sharply—from ₦2 billion for about 8,198 retirees in 2011 to over ₦20 billion for more than 16,000 retirees by 2025—highlighting the unsustainability of the previous system.

Okubadejo 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 and restore confidence.

Labour leaders, including Ahmed Benco of the Nigeria Labour Congress and Akeem Lasisi of the Trade Union Congress, commended the initiative, describing it as the first of its kind in the country and a model for other states.

Similarly, the Chairman of the Nigeria Union of Pensioners, Waheed Oloyede, lauded the programme as a major step toward improving retirees’ welfare, while calling for transparency in its implementation.

Representatives of Pension Fund Administrators and the National Pension Commission also described the scheme as a bold and innovative reform that strengthens retirement security.

At the event, cheques ranging from ₦17 million to ₦22 million were presented to 111 beneficiaries in the first phase of disbursement and the computation is based on agreed rates applied on 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.

It was subsequently adopted after extensive consultations involving organised labour, pension administrators, and government officials.

Stakeholders have since described the initiative as a sustainable mechanism to bridge gaps between the CPS and the former Defined Benefit Scheme, particularly in addressing gratuity-related concerns.

Under the framework, the APB is structured as a one-off payment at retirement, while balances in retirees’ Retirement Savings Accounts (RSAs) are preserved to enhance their monthly pensions.

The Ogun State Government has also recorded significant interventions in the pension sector, including ₦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, and ₦3.19 billion in CPS remittances as of January 2026.

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