The Ogun State Government has officially approved a new payment called the Additional Pension Benefit (APB) for retirees under the Contributory Pension Scheme (CPS). Announced on Sunday, February 15, 2026, this move is designed to provide extra financial support to workers who are retiring from the state service.
The Commissioner for Finance, Dapo Okubadejo, explained that this benefit is a first of its kind in Nigeria and aims to make the pension system more attractive to public servants.
This new benefit acts as a compensatory measure for retirees whose pension contributions were not properly sent to their accounts by previous administrations. Because those missed payments meant retirees lost out on years of investment growth, the APB will run for a period of 10 years to help make up the difference.
The amount each person receives will be calculated based on their years of service and salary level, ensuring that those who served longer receive a larger share of the support.
To make the system more stable, the government also plans to work with the National Pension Commission to ensure that regular pension contributions are saved mainly for monthly payments. The APB, on the other hand, will serve as a one-off retirement benefit to provide immediate relief.
This reform follows several meetings between the state government, labor unions, and pension fund managers to address long-standing concerns about the adequacy of monthly payments for senior citizens.
Labor leaders from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have praised Governor Dapo Abiodun for the reform, describing it as a bold step toward protecting the dignity of workers.
The government has also directed that all workers should receive pre-retirement training at least six months before they leave service to help them understand how to access these new benefits. With these changes, Ogun State aims to lead the way in providing a more secure and fair retirement for its public workforce.
 for retirees under the Contributory Pension Scheme (CPS). Announced on Sunday, February 15, 2026, this move is designed to provide extra financial support to workers who are retiring from the state service.){kind=link}