The Ogun State Government has cleared outstanding pension and gratuity obligations owed to retirees who exited service between 2012 and 2020, the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, has said.
Okubadejo made the disclosure on Tuesday at a media briefing organised by the Ogun State Ministry of Budget and Planning, reiterating the administration’s resolve to prioritise retirees’ welfare.
He explained that the inherited liabilities were associated with the Defined Benefits Scheme, which guarantees monthly pension payments to retirees. According to him, the current administration under Governor Dapo Abiodun has maintained consistent pension payments since taking office.
“From day one, this administration has ensured that pension payments are made monthly without fail. The arrears we met on ground were tied to the Defined Benefits Scheme,” he stated.
Providing figures to underscore the government’s efforts, the commissioner said annual pension expenditure increased from ₦6.7 billion in 2019 to ₦20 billion in 2025, with projections indicating it could rise to ₦40 billion by 2029.
He disclosed that ₦23.3 billion had been paid in gratuities to state retirees from 2012 to 2020, while ₦32.8 billion was also settled as inherited gratuity arrears for local government retirees.
Between 2019 and July 2, 2025, the state government disbursed ₦93.26 billion under the Defined Benefits Scheme and ₦94.78 billion to local government pensioners.
Okubadejo assured that the outstanding balance would be addressed as the state’s Internally Generated Revenue (IGR) continues to improve. He added that more than 300 officers who retired in July 2025 are currently receiving six-month palliative payments pending the completion of their pension documentation.
On pension reforms, he described the newly approved Additional Pension Benefits (APB) as a pioneering initiative in the country, noting that steps were underway to amend the state’s pension law to formally incorporate the scheme.
Highlighting the state’s fiscal trajectory, Okubadejo revealed that the 2026 budget rose from ₦1.054 trillion in 2025 to ₦1.668 trillion, while the state’s economy grew from ₦3.5 trillion in 2019 to ₦18.96 trillion in 2026.
He further stated that IGR expanded from ₦50 billion in 2019 to ₦240 billion in 2025, with projections of ₦512 billion for the current fiscal year.
In his remarks, the Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflects deepening fiscal reforms, citing an 85 per cent budget performance in 2024 and improved financial management.
Other members of the State Executive Council also outlined achievements across key sectors, including extensive road infrastructure development, enhanced healthcare funding, planned rail expansion, strengthened education interventions, and accelerated housing delivery across Ogun State.
The Commissioner for Housing, Jagunmolu Omoniyi, said the state government remains committed to expanding access to affordable housing. He explained that plans are underway to demolish and complete the Assembly Quarters, while construction of 1,000 affordable housing units will soon commence in Siun.
In his remarks, the Commissioner for Budget and Planning, Olaolu Olabimtan, noted that the 2026 budget underscores the administration’s commitment to fiscal discipline and reform. He revealed that the state recorded an 85 per cent budget performance in 2025, attributing the achievement to prudent financial management and sustained economic stability.
Similarly, the Commissioner for Works and Infrastructure, Ade Akinsanya, disclosed that the present administration has so far delivered 1,600 kilometres of roads across the state, with a target of 2,000 kilometres before the end of its tenure. He identified the Gateway International Airport as a central pillar of the state’s infrastructure drive, adding that projects such as the construction of the airport’s perimeter road are ongoing. He further assured residents that road projects would be intensified across the three senatorial districts.
