By By Elizabeth Ugbo
The Ogun State Government has approved an Additional Pension Benefit (APB) for retirees under the Contributory Pension Scheme (CPS) on Sunday, February 15, 2026, in Abeokuta. The move aims to strengthen retirement security and address gaps caused by delayed pension contributions from previous administrations. The benefit will be implemented through defined service-year brackets and is designed to boost confidence among public servants.
Government Confirms the New Benefit
The announcement was made by Kayode Akinmade, Special Adviser on Information and Strategy to Governor Dapo Abiodun, while the Commissioner for Finance, Dapo Okubadejo, shared details during a strategic engagement with government officials, labour unions, Pension Fund Administrators, and Pension Fund Management Committees.
APB Designed to Protect Retireesโ Interests
Okubadejo explained that while the Defined Benefit Scheme (DBS) and CPS operate differently, the APB mirrors the spirit of gratuity. He said:
- Calculation: The benefit uses service-year brackets and scale rates favorable to retirees.
- Duration: It will run for 10 years as compensation for delays in previous pension contributions.
- Objective: Cushion retirees from lost investment returns and provide equitable financial relief.
Sustainability and Payment Structure
The commissioner highlighted that large lump-sum withdrawals could reduce monthly pension income. Therefore, the government will:
- Seek approval from the National Pension Commission to prioritize monthly pension payments.
- Treat the APB as a one-off retirement benefit starting July 2025.
Call for Pre-Retirement Programmes
Okubadejo urged ministries, PFAs, and labour unions to:
- Strengthen service delivery.
- Conduct public sensitisation campaigns.
- Organize pre-retirement training at least six months before exit from service.
Labour Unions Praise the Reform
Labour leaders, including Ademola Benco (Nigeria Labour Congress) and Akeem Lasisi (Trade Union Congress of Nigeria), commended Governor Abiodun for a bold and worker-friendly initiative. They noted that the APB addresses longstanding concerns over the adequacy of CPS pensions.
Background: Retiree Protests Prompt Reform
The APB follows a December 2025 protest by CPS retirees at the Governorโs Office, Oke Mosan, Abeokuta. Retirees highlighted unremitted pension contributions spanning 18 years, prompting calls for a review of the CPS system.
