Ogun State Clears Pension and Gratuity Backlog

The Ogun State Government has successfully cleared an eight-year backlog of pension and gratuity payments owed to workers who retired between 2012 and 2020. Finance Commissioner Dapo Okubadejo announced this development during a media briefing on February 17, 2026.

He reaffirmed the administration's commitment to the welfare of retirees and highlighted that the current administration under Governor Dapo Abiodun has not defaulted on pension obligations since taking office. The backlog was linked to a defined benefit scheme, with the state having disbursed a total of ₦23.3 billion in gratuities and ₦32.8 billion in outstanding gratuities for local government retirees.

Okubadejo noted that the annual pension payment is projected to rise from ₦6.7 billion in 2019 to ₦20 billion by 2025, with a potential increase to ₦40 billion by 2029. The 2026 budget is set to increase to ₦1.054 trillion, reflecting strong fiscal reforms and a commitment to improving the state's economic outlook.