Ogun clears eight-year pension, gratuity backlog
Ogun State Government said yesterday it had settled backlog of pension and gratuity owed workers, who retired between 2012 and 2020. It unveiled plans to remodel the education sector, to
Ogun State Government said yesterday it had settled backlog of pension and gratuity owed workers, who retired between 2012 and 2020.
It unveiled plans to remodel the education sector, to improve learning environment and make the state the best among its peers.
Finance Commissioner Dapo Okubadejo made this known during a media parley on 2026 Budget breakdown, organised by the Ministry of Budget and Planning, at the State Secretariat Complex, Oke- Mosan, Abeokuta.
He restated the commitment of Governor Dapo Abiodun’s administration to the welfare of retirees, noting that the backlog was linked to the Defined Benefits Scheme, under which retirees received monthly pension payments, of which the incumbent administration had not defaulted.
“Since the inception of this administration, we have not missed a month of pension payment. What we inherited were arrears tied to the Defined Benefits Scheme,” he said.
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Okubadejo, who is also the economic adviser to the governor, said the annual pension payments rose from N6.7 billion in 2019 to N20 Billion in 2025, with projections showing a possible increase to N40 billion by 2029.
He noted that the state had so far paid N23. 3 billion in gratuities covering retirees from 2012 to 2020, alongside another N32. 8 billion in outstanding gratuities for local government retirees inherited by the administration.
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Okubadejo said between 2019 and July 2, 2025, the state disbursed N93. 26 billion in pensions under the Defined Benefits Scheme and N94.78 billion to local government pensioners.
He says the remaining backlog will be cleared as Internally Generated Revenue (IGR) continues to improve, noting that over 300 workers who retired in July 2025 are receiving six-month palliatives pending the completion of their pension documentation.
The commissioner described the newly-approved Additional Pension Benefits (APB) as the first of its kind in Nigeria, saying amendments to the state’s pension law would be pursued to formally integrate the scheme.
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Commenting on the state’s fiscal outlook, Okubadejo said the 2026 budget increased from N1. 054 trillion in 2025 to N1. 668 trillion, while Ogun’s economy expanded from N3. 5 trillion in 2019 to N18. 96 trillion in 2026.
He said the state’s Internally Generated Revenue (IGR) grew from N50 billion in 2019 to N240 billion in 2025, with a projection of N512 billion this year.
Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflected strong fiscal reforms, noting an 85 per cent budget execution rate in 2024 and sustained financial stability.
Other commissioners highlighted sectoral achievements, including massive road construction, increased health care funding, rail extension plans, education support programmes and expanded housing projects across the state.
Commissioner for Education, Science and Technology, Prof. Abayomi Arigbabu, said the state was sustaining the scholarship scheme that rewarded students who maintained academic standing of distinction and first- class levels at the universities, polytechnics and colleges across the country.
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Arigbabu noted that the popular “Ogun Scholar” also covered brilliant, but indigent students of the state as an educational intervention programme aimed at providing opportunities for them not to discontinue their academic pursuits.
He explains that the education sector enjoys a 17 – per cent allocation in the 2026 budget, even as the state planned a “massive rehabilitation” of primary and secondary schools across the state.
“We found out that a lot of schools are crying for our attention, so we will embark on massive rehabilitation of school buildings under what is termed ‘Ogun Rehabs’, in which halls and academic buildings will be rehabilitated.”
