Lagos paid N168.2bn to over 48,000 retirees since 2007 – Govt

Lagos State has disbursed a total of N168.2 billion to more than 48,000 retirees under its Contributory Pension Scheme since 2007. The state government announced this figure in response to protests by some retirees regarding pension payments.

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The Lagos State Pension Commission has paid N168.2 Billion (One hundred and sixty eight billion, two hundred million Naira) to over 48,000 retirees from 2007 to date.

The government stated that N92 billion in accrued rights, which includes gratuity and pension elements, was paid to over 25,000 retirees between May 2019 and the announcement date. The current administration has prioritized the prompt and full settlement of these obligations. In July 2024, a significant N5 billion payment was made to 1,963 retirees, clearing all outstanding backlogs in pension obligations under the Contributory Pension Scheme.

To strengthen the scheme, Lagos State increased pension contribution rates in 2020 to 10% for employers and 8% for employees. The government also highlighted support for sick pensioners through expedited gratuity payments and continued pension payments into their Retirement Savings Accounts. Welfare programs are conducted twice yearly to assist retirees facing rising living costs.

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Accrued rights, it should be noted, comprise both the gratuity and pension elements owed to a retiring officer, and this administration has prioritized the prompt and full settlement of both components.

For retirees under the Defined Benefits Scheme, the state extended wage awards. Initially N25,000 for over 10,000 retirees between December 2023 and February 2024, these awards saw further increases of 20% and 28% in March 2025. In May 2026, Lagos State matched the Federal Government's N32,000 pension wage award for its DBS retirees.

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This administration has been particularly deliberate in expediting the payment of accrued rights, releasing additional funding specifically to clear outstanding backlogs. This resolve culminated in a landmark achievement in July 2024, when a single-batch payment of N5 billion was made to 1,963 retirees, an intervention that cleared all outstanding backlog in pension obligations under the CPS.