The Ogun State Government has introduced an Additional Pension Benefit (APB) to address concerns raised by stakeholders following the full implementation of the Contributory Pension Scheme (CPS) in the state.
The initiative, approved by Governor Dapo Abiodun, was announced in a communiqué issued after consultative meetings involving organised labour, members of the State and Local Government Pension Administration Committees, and the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo.
The CPS became fully operational in Ogun State on July 2, 2025, marking a major shift in the state’s pension administration.
Stakeholders described the APB as an innovative and sustainable mechanism aimed at preventing pension crises and boosting confidence in the CPS.
According to the communiqué, the APB is a one-off payment at retirement designed to bridge gaps between the CPS and the former Defined Benefit Scheme, particularly in relation to gratuity.
Eligible retirees will receive between 116 percent and 280 percent of their Final Total Annual Emolument, depending on years of qualifying service. The payment will be made directly at retirement, while balances in Retirement Savings Accounts will remain to support monthly pensions.
The government disclosed that ₦26.35 billion has been spent to clear outstanding gratuities and begin amortisation of arrears dating back to July 2012. It added that ₦5.89 billion has been remitted as CPS arrears and accrued investment returns, ₦500 million paid as death benefits, and ₦3.19 billion contributed as monthly remittances as of January 2026.
Stakeholders also urged the government to explore the use of national pension assets for infrastructure and mortgage financing, strengthen engagement with Pension Fund Administrators, and enhance transparency through improved communication, pre-retirement training, and electronic verification, reaffirming their commitment to sustainable pension reforms in the state.
