By approving an Additional Pension Benefit (APB) to strengthen retirement security and fill current gaps in the Contributory Pension program (CPS), the Ogun State Government has shown its dedication to improve the welfare of workers and retirees under the program.
Mr. Dapo Okubadejo, the Honourable Commissioner for Finance and Chief Economic Adviser, revealed the news during a meeting that followed strategic consultations between the State Government, unions, PFAs, and members of the PFM Committees.
Speaking at the meeting, the Commissioner emphasised that compliance with the CPS law is both mandatory and beneficial to employees and the State. He explained that the Defined Benefit Scheme (DBS) and the CPS are fundamentally different, stressing that the administration of Dapo Abiodun remains committed to addressing identified gaps in order to safeguard workers’ interests.
He disclosed that the Governor had approved the introduction of the Additional Pension Benefit in line with existing laws. While gratuity was a feature of the DBS, he noted that the APB under the CPS is structured in a similar spirit but differs in computation. According to him, the benefit will be calculated using defined service-year brackets and applicable scale rates, which are generally more favourable to most retiring workers.
Mr. Okubadejo stated that the APB was the initial of its type in Nigeria and was created with the express purpose of enhancing the CPS and allaying concerns about retirement stability. He said the initiative reflects Government’s proactive approach to pension administration and confidence-building among public servants.
He further explained that the APB would run for ten years as a compensatory measure for retirees whose accrued pension obligations were not promptly remitted by previous administrations, depriving them of potential investment returns. The benefit, he said, is intended to cushion the effects of those lapses and provide equitable financial relief.
On sustainability, the Commissioner noted that large lump-sum withdrawals often reduce monthly pension income. As a result, the Government plans to seek approval from the National Pension Commission to preserve pension contributions primarily for monthly payments, while the APB would serve as a one-off retirement benefit, effective from July 2025.
He demanded that the appropriate government agencies, including ministries and unions, improve service delivery, raise public awareness, and schedule frequent training sessions for employees six months before they retire.
Earlier, Permanent Secretaries from the Bureau of State and Local Government Pensions, Mrs. Arinola Adetayo and Engr. Olufisan Osiyale, said the engagements were aimed at improving collaboration, resolving emerging challenges and ensuring smooth access to retirement benefits.
They described the CPS as a partnership among the employer, employee and PFAs, stressing that strong synergy remains essential for the success of the scheme.
Responding on behalf of labour unions, leaders of the Nigeria Labour Congress and the Trade Union Congress of Nigeria — Mr. Ademola Benco and Mr. 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 effectively addresses those challenges.
Describing the initiative as innovative and unprecedented, the labour leaders pledged full support for the new retirement benefit structure, saying it reflects the administration’s strong commitment to workers’ welfare, dignity and long-term financial security in Ogun State.
By approving an Additional Pension Benefit (APB) to strengthen retirement security and fill current gaps in the Contributory Pension program (CPS), the Ogun State Government has shown its dedication to improve the welfare of workers and retirees under the program.
Mr. Dapo Okubadejo, the Honourable Commissioner for Finance and Chief Economic Adviser, revealed the news during a meeting that followed strategic consultations between the State Government, unions, PFAs, and members of the PFM Committees.
Speaking at the meeting, the Commissioner emphasised that compliance with the CPS law is both mandatory and beneficial to employees and the State. He explained that the Defined Benefit Scheme (DBS) and the CPS are fundamentally different, stressing that the administration of Dapo Abiodun remains committed to addressing identified gaps in order to safeguard workers’ interests.
He disclosed that the Governor had approved the introduction of the Additional Pension Benefit in line with existing laws. While gratuity was a feature of the DBS, he noted that the APB under the CPS is structured in a similar spirit but differs in computation. According to him, the benefit will be calculated using defined service-year brackets and applicable scale rates, which are generally more favourable to most retiring workers.
Mr. Okubadejo stated that the APB was the initial of its type in Nigeria and was created with the express purpose of enhancing the CPS and allaying concerns about retirement stability. He said the initiative reflects Government’s proactive approach to pension administration and confidence-building among public servants.
He further explained that the APB would run for ten years as a compensatory measure for retirees whose accrued pension obligations were not promptly remitted by previous administrations, depriving them of potential investment returns. The benefit, he said, is intended to cushion the effects of those lapses and provide equitable financial relief.
On sustainability, the Commissioner noted that large lump-sum withdrawals often reduce monthly pension income. As a result, the Government plans to seek approval from the National Pension Commission to preserve pension contributions primarily for monthly payments, while the APB would serve as a one-off retirement benefit, effective from July 2025.
He demanded that the appropriate government agencies, including ministries and unions, improve service delivery, raise public awareness, and schedule frequent training sessions for employees six months before they retire.
Earlier, Permanent Secretaries from the Bureau of State and Local Government Pensions, Mrs. Arinola Adetayo and Engr. Olufisan Osiyale, said the engagements were aimed at improving collaboration, resolving emerging challenges and ensuring smooth access to retirement benefits.
They described the CPS as a partnership among the employer, employee and PFAs, stressing that strong synergy remains essential for the success of the scheme.
Responding on behalf of labour unions, leaders of the Nigeria Labour Congress and the Trade Union Congress of Nigeria — Mr. Ademola Benco and Mr. 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 effectively addresses those challenges.
Describing the initiative as innovative and unprecedented, the labour leaders pledged full support for the new retirement benefit structure, saying it reflects the administration’s strong commitment to workers’ welfare, dignity and long-term financial security in Ogun State.
The Chairman of the Southern Governors’ Forum and Governor of Ogun State, Dapo Abiodun, has commiserated with the Government and people of Kano State over the devastating fire outbreak at Singa Market in Kano.
The inferno reportedly destroyed properties worth over ₦5 billion, affected more than 1,000 businesses, and left seven persons missing.
In a statement issued on Sunday in Abeokuta, the Ogun State capital, Abiodun described the incident as one of the most unfortunate tragedies in the history of the market.
He sympathised with traders who lost valuable goods and properties, urging them not to lose hope, assuring that the Kano State Government would take necessary steps to support affected victims.
According to him, the destruction of four residential buildings housing small-scale businesses, alongside the loss of equipment, merchandise, and other valuables, was a heavy blow to the livelihoods of many families.
The Ogun State Governor also called on market authorities and relevant local government officials to implement measures to prevent future occurrences.
He said:
“On behalf of my colleagues in the Southern Governors’ Forum, I commiserate with the Kano State Government and the traders affected by this unfortunate incident.
“This fire outbreak has caused tremendous damage, but I urge those affected not to despair.
“The Kano State Government, under the leadership of Abba Kabir Yusuf, is doing everything humanly possible to bring the situation under control and assist the victims.”