Ogun State has implemented a significant pension reform, promising retirees enhanced benefits that range from 116 per cent to 280 per cent of their Total Annual Emoluments (TAE). This new initiative, the Additional Pension Benefit (APB), aims to substantially increase retirement earnings while maintaining pension stability.

Governor Dapo Abiodun stated that this reform marks a considerable departure from past practices where gratuity payments were lower and often delayed. Under the APB structure, the minimum payout for Ogun retirees is set at 116 per cent of TAE, with some individuals potentially receiving up to 280 per cent, nearly tripling the federal gratuity equivalent.

The reform is expected to benefit between 70 and 80 per cent of retirees, providing them with a substantial financial uplift. The Secretary to the State Government, Tokunbo Talabi, explained that the reform addresses long-standing inefficiencies in pension administration, ensuring timely payments.

“Our minimum is 116 per cent, rising to 280 per cent, which is significantly higher than the 100 per cent benchmark. More importantly, these payments will be timely,” Talabi stated.

The APB model also restructures how retirement benefits are accessed. Previously, retirees could withdraw about 25 per cent of their Retirement Savings Account (RSA) as a lump sum, reducing their monthly pension. The new model replaces this with a separate lump-sum payment, allowing the full pension contributions to remain invested with Pension Fund Administrators. This offers a dual advantage of larger upfront benefits and stronger monthly pension flows.

The Ogun State government has demonstrated its commitment to the pension system through substantial financial interventions. Since the current administration took office, N26.35 billion has been paid to clear outstanding gratuities, N5.89 billion in pension deduction arrears along with accrued returns has been remitted, and N500 million in death benefits has been disbursed. Additionally, N3.19 billion has been committed to Contributory Pension Scheme (CPS) remittances as of January 2026.

The scale of past liabilities highlights the necessity of this reform. Pension obligations under the old Defined Benefit Scheme grew from N2 billion for approximately 8,198 retirees in 2011 to over N20 billion for more than 16,000 retirees by 2025. By 2019, the state had accumulated over N42 billion in unpaid liabilities, underscoring the unsustainability of the previous system.

Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, noted that the APB was introduced after extensive consultations following the full rollout of the CPS in July 2025, which had initially raised concerns about reduced lump-sum benefits. At the rollout event, 111 retirees received cheques ranging from N17 million to N22 million.

Representatives from the Nigeria Labour Congress and Trade Union Congress have endorsed the scheme as a new national benchmark, while the Nigeria Union of Pensioners called for strict transparency. Officials from Pension Fund Administrators and the National Pension Commission also commended the model as a bold reform that strengthens retirement security.

In related news, the Pension Transitional Arrangement Directorate (PTAD) has completed the payment of February 2026 pensions to retirees under the Defined Benefit Scheme (DBS). This follows a brief delay that had caused concern among beneficiaries.

PTAD apologised for the delay and confirmed that payments across all pension departments have been fully finalised. Several pensioners confirmed receiving their payments and expressed appreciation for the Directorate's responsiveness and communication during the period.

PTAD manages pensions for retirees from treasury-funded Ministries, Departments, and Agencies. Recent reforms include biometric verification, payroll clean-up, and digitisation of records to enhance transparency and eliminate irregularities. The Directorate also maintains active engagement with pensioners through its communication channels.

Meanwhile, Odu’a Investment Company Limited (OICL) has acquired a 10 per cent minority equity stake in FCMB Pensions Limited, a subsidiary of FCMB Group Plc. The transaction has received approvals from the National Pension Commission (PenCom) and the Central Bank of Nigeria (CBN), with the Securities and Exchange Commission (SEC) duly notified.

OICL described the acquisition as a strategic investment in Nigeria’s growing pension industry, which it views as a resilient and expanding segment of the financial services sector. The deal is expected to strengthen FCMB Pensions’ shareholder base by bringing together institutions with complementary strengths and a shared focus on long-term growth.

Chairman of Odu’a Investment Company Limited, Otunba Bimbo Ashiru, stated that the investment aligns with OICL’s strategy of partnering with strong institutions in critical sectors. FCMB Pensions, as of December 2025, had over N1.1 trillion in assets under management.

PTAD has also issued a warning regarding the increasing impersonation of the agency on social media platforms. The Directorate urged pensioners and stakeholders to beware of fraudulent accounts and interact only through verified communication channels to avoid online fraud and misinformation.

The Executive Secretary, Tolulope Odunaiya, stressed that PTAD does not conduct official communication through unauthorised platforms. Pensioners seeking information should rely strictly on the agency’s authenticated platforms, including Facebook and Instagram under PTADNigeria, and its official X (formerly Twitter) and WhatsApp channels.