Abiodun Approves Additional Pension Benefit to Boost Welfare of Ogun Retirees

By: Israel Adeleke

OPEN TELEVISION NAIJA (OTN) News reports that the Ogun State Government has approved an Additional Pension Benefit (APB) for retirees under the Contributory Pension Scheme (CPS), reaffirming its commitment to improving workers’ welfare and strengthening retirement security in the state.

OTN News further reports that the approval, granted by Governor Dapo Abiodun, was disclosed during a meeting chaired by the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, following extensive engagements between the state government, labour unions, Pension Fund Administrators (PFAs) and members of the Pension Fund Management Committees.

Speaking at the meeting, Okubadejo stressed that compliance with the CPS law is both mandatory and beneficial to employees and the state, adding that the administration remains committed to protecting the interests of workers and retirees.

He explained that while the Defined Benefit Scheme (DBS) and the CPS differ fundamentally, the government is determined to close identified gaps within the CPS framework.

According to the commissioner, the newly approved APB was introduced in line with existing pension laws to provide additional retirement support.

He noted that although gratuity was a feature of the former DBS, the APB under the CPS is structured in a similar spirit but differs in computation.

He explained that the benefit would be calculated using defined service-year brackets and applicable scale rates, which he said are generally more favourable to most retiring workers.

Okubadejo described the APB as the first initiative of its kind in Nigeria, designed to make the CPS more attractive and reduce anxieties surrounding retirement.

The commissioner further disclosed that the APB would run for a period of 10 years as a compensatory measure for retirees whose accrued pension obligations were not promptly remitted by previous administrations, a lapse that denied them potential investment returns.

The benefit, he said, is meant to cushion the impact of those delays and provide equitable financial relief.

Addressing sustainability concerns, Okubadejo noted that large lump-sum withdrawals often reduce retirees’ monthly pension income.

As a result, the state government plans to seek approval from the National Pension Commission to preserve pension contributions primarily for monthly payments, while the APB would function as a one-off retirement benefit.

He said the new arrangement is expected to take effect from July 2025.

The commissioner also urged relevant ministries, PFAs and labour unions to improve service delivery, intensify public sensitisation and organise regular pre-retirement training programmes at least six months before workers exit service.

Earlier, permanent secretaries from the Bureau of State and Local Government Pensions, Arinola Adetayo and Olufisan Osiyale, said the engagement was aimed at strengthening collaboration, resolving emerging challenges and ensuring seamless access to retirement benefits.

They described the CPS as a partnership between employers, employees and PFAs, stressing that strong synergy is critical to its success.

Responding on behalf of labour unions, leaders of the Nigeria Labour Congress and the Trade Union Congress of Nigeria, Ademola Benco and Akeem Lasisi, commended the governor for what they described as a bold and worker-friendly reform.

They noted that concerns over the adequacy of monthly pensions under the CPS had persisted for years but expressed satisfaction that the APB directly addresses those challenges. 

Describing the initiative as innovative and unprecedented, the labour leaders pledged full support for the new pension structure, saying it reflects the Ogun State Government’s commitment to workers’ dignity, welfare and long-term financial security.