Ogun settles 8-year pension, gratuity arrears, to recruit 2,000 teachers
The Ogun State Government has cleared outstanding pension and gratuity arrears owed to workers who retired between 2012 and 2020, reaffirming its commitment to retirees’ welfare. Commissioner for Finance, Dapo
The Ogun State Government has cleared outstanding pension and gratuity arrears owed to workers who retired between 2012 and 2020, reaffirming its commitment to retirees’ welfare.
Commissioner for Finance, Dapo Okubadejo, disclosed this on Tuesday during a media briefing on the breakdown of the 2026 budget, organised by the Ministry of Budget and Planning at the State Secretariat, Oke-Mosan, Abeokuta.
Okubadejo explained that the inherited backlog was tied to the Defined Benefits Scheme, under which retirees receive monthly pensions.
He stated that the current administration has maintained uninterrupted pension payments since assuming office.
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According to him, annual pension obligations rose from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections indicating a possible increase to ₦40 billion by 2029.
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He added that ₦23.3 billion has been paid in gratuities to retirees from 2012 to 2020, alongside ₦32.8 billion in outstanding gratuities for local government retirees inherited by the administration.
Between 2019 and July 2, 2025, the state disbursed ₦93.26 billion in pensions under the Defined Benefits Scheme and ₦94.78 billion to local government pensioners. Okubadejo assured that remaining arrears would be settled as Internally Generated Revenue improves, noting that over 300 workers who retired in July 2025 are receiving six-month palliatives pending completion of their pension documentation.
He also described the newly approved Additional Pension Benefits as unprecedented in the country, adding that amendments to the state’s pension law would be pursued to formally integrate the scheme.
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On fiscal performance, the commissioner disclosed that the 2026 budget increased from ₦1.054 trillion in 2025 to ₦1.668 trillion, while the state’s economy expanded from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026. Internally Generated Revenue rose from ₦50 billion in 2019 to ₦240 billion in 2025, with a projection of ₦512 billion for 2026.
Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 appropriation reflects sustained fiscal reforms, citing an 85 per cent budget execution rate in 2024.
Sectoral commissioners highlighted achievements in road construction, healthcare funding, rail extension plans, education support initiatives, and housing development.
Commissioner for Education, Science and Technology, Prof. Abayomi Arigbabu, said the education sector received 17 per cent of the 2026 budget. He announced plans for large-scale rehabilitation of primary and secondary schools under a programme tagged “Ogun Rehabs.”
Arigbabu disclosed that 12 mega-classrooms—three each across the Remo, Ijebu, Yewa, and Egba divisions—will be constructed and completed. He added that five Special Needs Schools would be remodelled into Centres of Excellence.
The state also plans to distribute 20,000 additional chairs and tables to schools and provide specially designed exercise books to pupils and students statewide as part of activities marking the state’s 50th anniversary.
In addition, 2,000 classroom teachers engaged under the “Ogun Teach” scheme will be converted to full-time employment, increasing the total number of teachers under the initiative to 6,000.
