The Ogun State Government has launched the Additional Pension Benefit (APB) initiative, a move designed to ensure that retirees receive significantly higher payouts than previously possible under traditional gratuity systems.
Governor Dapo Abiodun, represented by Secretary to the State Government Tokunbo Talabi at a recent cheque presentation ceremony, revealed that the new framework allows retirees to earn between 116% and 280% of their Total Annual Emoluments.
This initiative specifically addresses the long-standing transition from the old Defined Benefit Scheme to the Contributory Pension Scheme (CPS), effectively bridging the financial gap that once left many retirees vulnerable. By providing a substantial one-off lump sum through the APB, the government is now able to leave the core contributions within Pension Fund Administrators intact, which in turn generates more robust and sustainable monthly pension payments for the elderly.
The fiscal logic behind this reform centers on sustainability and the restoration of public trust in the state’s pension administration.
Commissioner for Finance Dapo Okubadejo noted that the state’s pension liabilities had ballooned from ₦2 billion in 2011 to over ₦20 billion by 2025, a trajectory that necessitated a radical departure from the unsustainable models of the past.
Since 2019, the Abiodun administration has actively worked to clear over ₦42 billion in inherited liabilities while simultaneously ensuring that retirees receive returns on delayed remittances.
During the initial phase of this new disbursement, 111 beneficiaries received cheques ranging from ₦17 million to ₦22 million, signaling a tangible shift toward immediate financial security upon exit from service.
Labor leaders and pension stakeholders have praised the APB as a national model, noting that Ogun State has exceeded the Federal Government’s 100% gratuity benchmark, thereby prioritizing the moral and economic well-being of its workforce despite competing budgetary pressures.
