Ogun Boosts Retiree Benefits by 280% Under New Pension Scheme

​The Ogun State Government has sets a new benchmark for retirement welfare in Nigeria with the launch of the Additional Pension Benefit (APB) initiative. Announced by Governor Dapo Abiodun, the scheme allows retirees to earn between 116% and 280% of their Total Annual Emoluments (TAE), significantly surpassing the federal gratuity benchmark of 100%.

​During a symbolic presentation of cheques to 111 beneficiaries—with individual payments ranging from ₦17 million to ₦22 million—Governor Abiodun emphasized that this reform addresses the historical delays and funding gaps that plagued the previous Defined Benefit Scheme.

​A “Game-Changer” for State Pensions

​Represented by the Secretary to the State Government, Tokunbo Talabi, the Governor noted that nearly 80% of retiring workers will now receive higher benefits than under the old system.

​The APB acts as a one-off lump sum, allowing retirees to keep their full contributions within their Pension Fund Administrators (PFAs) intact. This ensures that their monthly pension payments remain robust, as they no longer need to draw from their core savings for an initial payout.

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​Clearing the Backlog

​The administration has moved aggressively to restore trust in the Contributory Pension Scheme (CPS), which faced significant hurdles since its 2008 inception. Key financial interventions include:

• ​₦26.35 billion paid toward outstanding gratuity liabilities.
• ​₦5.89 billion remitted in CPS deduction arrears and accrued returns.
• ​₦3.19 billion in active CPS remittances as of January 2026.

​Commissioner for Finance, Dapo Okubadejo, highlighted the necessity of the shift, noting that liabilities under the old system had ballooned from ₦2 billion in 2011 to over ₦20 billion by 2025, rendering it unsustainable.

​National Acclaim

​Labour leaders from the NLC and TUC have hailed the move as a “first of its kind,” suggesting it serves as a blueprint for other states struggling with pension arrears. The initiative, adopted after the full implementation of the CPS in July 2025, reflects a collaborative effort between the government, organized labor, and the National Pension Commission (PenCom) to ensure long-term financial security for the state’s workforce.