Ogun State boosts retiree pensions
Analysis based on 6 articles · First reported Mar 17, 2026 · Last updated Mar 18, 2026
The new pension scheme in Nigeria — Ogun State is expected to have a positive impact on the local economy by increasing the financial security and purchasing power of retirees. This reform by Nigeria — Ogun State could also set a precedent for other Nigerian states, potentially leading to broader improvements in pension administration and retiree welfare across the country.
Nigeria — Ogun State has introduced the Additional Pension Benefit (APB) initiative, a new pension scheme that significantly increases benefits for its civil and public service retirees. Under this scheme, retirees will receive between 116% and 280% of their Total Annual Emoluments (TAE), far exceeding the Nigeria's 100% gratuity benchmark. Governor Dapo Abiodun announced this reform, which aims to provide timely and improved benefits, addressing historical delays and substantial pension liabilities. The APB functions as a one-off lump sum payment, allowing retirees' full pension contributions to remain invested with Pension Fund Administrators (PFAs) for stronger monthly pension payments. The Nigeria — Ogun State government has also taken steps to clear inherited pension liabilities, including N26.35 billion in outstanding gratuities and N5.89 billion in Contributory Pension Scheme (CPS) arrears. Labour leaders and pension stakeholders, including the Nigeria Labour Congress and Nigeria — Action Congress of Nigeria, have lauded the initiative as a groundbreaking and sustainable model.
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