Ogun releases N6.75 billion for gratuity, additional pension benefits

The Ogun State Government has released N6.75 billion to settle gratuity and Additional Pension Benefits (APB) owed to retirees in the state.

The Head of Service, Olanrewaju Saka, disclosed this in a statement issued on Friday in Abeokuta, saying the funds were part of the government’s efforts to reduce outstanding pension obligations and improve the welfare of retired public workers.

The Additional Pension Benefits scheme was introduced to address differences in retirement benefits between the old Defined Benefit Scheme (DBS) and the Contributory Pension Scheme (CPS).

What they are saying

According to Saka, N2.751 billion was released to pay gratuity to 432 beneficiaries, while another N4 billion was released as Additional Pension Benefits to eligible retirees from July 2025 to date.

• He said the payments reflected the government’s commitment to meeting its obligations to workers who served the state, despite competing demands on its resources.
• Under the CPS, workers contribute towards retirement through Retirement Savings Accounts (RSAs) managed by Pension Fund Administrators. However, some retirees may receive lower pension benefits under the contributory system than they would have received under the former DBS.

Saka explained that the APB was designed to bridge part of this difference by providing eligible retirees with additional payments from the state government.

He clarified that APB payments are separate from funds accumulated in retirees’ RSAs and do not reduce the savings held in those accounts.

Get up to speed

In July 2025, the Ogun State Government announced the full rollout of the Contributory Pension Scheme, with the scheme taking effect from July 2, 2025.

• Governor Dapo Abiodun announced the implementation during a meeting with labour leaders in Abeokuta, describing it as part of efforts to address concerns around workers’ retirement benefits and resolve industrial action that had disrupted public services.
• The state government also introduced a 10-year framework for clearing outstanding pension liabilities in two five-year tranches, with completion scheduled for 2035.
• In November 2023, the Ogun government disclosed that it had disbursed more than N112 billion in pensions and gratuities to retired civil servants at the state and local government levels.

The government said the payments were part of efforts to meet its pension obligations and improve the welfare of retired public workers.

What you should know

The latest payment comes after pension-related concerns contributed to an industrial dispute between the Ogun State Government and organised labour in July 2025.

• On July 15, 2025, the Nigeria Labour Congress (NLC) in Ogun ordered an indefinite strike, citing the government’s alleged failure to remit pension deductions, implement the national minimum wage and resolve other outstanding issues.
• The NLC said the government had not complied with the Contributory Pension Scheme established under the Ogun State Pension Reform Law of 2008, as amended in 2013.
• The union’s position came shortly before the state government announced the full rollout of the CPS, which took effect on July 2, 2025.

The dispute highlighted concerns around the administration of pension deductions and the transition from the old Defined Benefit Scheme to the contributory system.

The state government has since continued to make payments to retirees, including the latest N6.75 billion release for gratuity and Additional Pension Benefits.