The Ogun State Government has released N6.75 billion to clear outstanding gratuity and Additional Pension Benefits (APB) owed to retirees across the state. Head of Service Olanrewaju Saka disclosed the payment in a statement issued on Friday in Abeokuta, describing it as part of ongoing efforts to reduce pension liabilities and improve the welfare of retired public workers.
Of the total amount, N2.751 billion was earmarked for gratuity payments to 432 beneficiaries, while N4 billion was released as Additional Pension Benefits to eligible retirees covering the period from July 2025 to date.
The APB scheme was introduced to address disparities in retirement benefits between the legacy Defined Benefit Scheme (DBS) and the Contributory Pension Scheme (CPS). Under the CPS, workers build retirement savings through Retirement Savings Accounts managed by Pension Fund Administrators. However, some retirees may receive lower pension benefits under the contributory arrangement than they would have obtained under the former defined benefit framework.
Saka explained that the APB is designed to bridge part of that difference by providing eligible retirees with supplementary payments from the state government. He clarified that APB payments are separate from the funds accumulated in retirees' Retirement Savings Accounts and do not reduce the balances held in those accounts.
He added that the releases reflect the state government's commitment to meeting its obligations to workers who served the state, despite competing demands on its resources.
The payment follows the full rollout of the Contributory Pension Scheme in Ogun State, which took effect on July 2, 2025. Governor Dapo Abiodun announced the implementation during a meeting with labour leaders in Abeokuta, citing the need to address concerns around workers' retirement benefits and resolve industrial action that had disrupted public services.
The state 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.
