The Federal Government has earmarked ₦1.376 trillion for pensions, gratuities, and retiree benefits in the 2026 Appropriation Bill currently undergoing legislative scrutiny at the National Assembly.
This allocation, presented as part of President Bola Tinubu’s ₦58.18 trillion “Budget of Consolidation, Renewed Resilience, and Shared Prosperity,” reflects a strategic effort to resolve long-standing arrears and meet rising statutory obligations across the civil service, military, and paramilitary institutions.
Military pensions and gratuities represent the largest single component of the proposal, with ₦486.04 billion allocated to the Defense Military Pensions (DMP) office. This includes ₦237.25 billion for standard pensions and ₦130.38 billion for expected 2026 retirees.
Additionally, the government has set aside ₦98.53 billion for death benefits and specific arrears of ₦3.96 billion for gratuities owed between 2019 and 2021, signaling a commitment to clearing the backlog for the armed forces.
The National Pension Commission (PENCOM) is slated to receive ₦427.04 billion, a figure that includes ₦233.71 billion for the Pension Protection Fund and ₦62.25 billion for the Redemption Fund. A critical highlight of the PENCOM allocation is the ₦67.72 billion provision intended to cover pension increases stemming from the 2024 consequential adjustment.
Furthermore, the Pension Transitional Arrangement Directorate (PTAD) has been allocated ₦285.59 billion to manage legacy defined benefit schemes, including ₦23.29 billion specifically for the implementation of newly approved pension rates.
Other significant subheads in the bill include ₦94.54 billion for civilian pensions under the Office of the Head of the Civil Service, ₦28.61 billion for the Department of State Services (DSS), and ₦23.54 billion for the Nigeria Intelligence Agency (NIA). The government also addressed specialized sectors by proposing ₦13.12 billion for university pension arrears and ₦14.28 billion for the benefits of retired professors.
As fiscal pressures mount, the administration emphasizes that these multi-sectoral allocations are vital to maintaining the dignity of senior citizens and ensuring the stability of the national social security architecture.
