The Lagos State Government has reaffirmed its commitment to the welfare of retirees, highlighting billions of naira paid to former public servants under both the Contributory Pension Scheme (CPS) and Defined Benefits Scheme (DBS).
Eko Hot News reports that the state government said its pension administration under Governor Babajide Sanwo-Olu and Deputy Governor Dr. Kadri Obafemi Hamzat has produced significant improvements in the payment of retirement benefits.
The government made the clarification in response to concerns raised by some protesting retirees over pension obligations in the state.
According to the Lagos State Pension Commission (LASPEC), the state has paid N168.2 billion to more than 48,000 retirees since the implementation of the CPS in 2007.
The government said the payments demonstrate its sustained effort to meet its obligations to retired public servants.
LASPEC further disclosed that N92 billion had been released in accrued rights to more than 25,000 retirees between May 2019 and August 2026.
Accrued rights consist of both gratuity and pension components owed to eligible retiring officers.
The administration said it has made the prompt settlement of these obligations a priority.
As part of efforts to strengthen retirement savings, the state government increased pension contribution rates in 2020.
Under the revised arrangement, employers contribute 10 per cent while employees contribute eight per cent of relevant earnings.
The government said the policy was introduced to improve workers’ retirement savings and enhance the long-term sustainability of the pension scheme.
The administration also said it had taken deliberate steps to reduce outstanding pension obligations.
Additional funding was released to address accumulated liabilities and accelerate payments to retirees.
A major milestone was recorded in July 2024 when N5 billion was paid in a single batch to 1,963 retirees.
The government said the payment cleared the outstanding backlog of accrued rights under the CPS at the time.
It also introduced measures aimed at providing quicker assistance to retirees facing health challenges.
Under the arrangement, sick pensioners can receive expedited gratuity payments as an immediate form of financial support.
The pension component, however, continues to be paid into retirees’ Retirement Savings Accounts in accordance with established procedures.
The government said the measure was designed to provide timely assistance while maintaining the required pension administration process.
Rising living costs have also influenced the state’s pension welfare initiatives.
The administration conducts welfare programmes twice each year for retirees across Lagos.
The programmes are intended to provide direct support to thousands of pensioners and ease the financial pressure associated with increasing living expenses.
Retirees under the Defined Benefits Scheme have also benefited from several interventions.
Between December 2023 and February 2024, the state extended the N25,000 wage award granted to serving workers to more than 10,000 DBS retirees.
The government subsequently approved further increases for the category in March 2025.
The increases stood at 20 per cent and 28 per cent for different categories of DBS pensioners.
Another intervention followed in May 2026.
After the Federal Government approved a N32,000 wage increase for pensioners under its scheme, Lagos said it matched the increase for its own DBS retirees within the same year.
The state government said the latest intervention has increased its pension wage bill by more than 100 per cent.
The government also provided an update on pension payments made so far in 2026.
LASPEC said it had paid more than N4 billion to 1,862 retirees during the year.
The commission is also expected to release another N1 billion to approximately 700 retirees within one week.
The government said the planned payment is part of its ongoing effort to settle pension obligations as they become due.
Officials maintained that the measures cover retirees under both major pension arrangements operating in the state.
The CPS applies to workers covered by the contributory pension system, while the DBS covers retirees under the older pension arrangement.
The government said its interventions demonstrate a broader commitment to protecting the dignity and financial security of retired public servants.
It also maintained that pension administration remains an important part of its governance priorities.
According to the state, the various payments and welfare initiatives show that retirees remain an important constituency in its social protection programmes.
The Sanwo-Olu administration said it will continue to prioritize the payment of pension obligations and welfare support for retired workers.
The state also emphasized that its pension interventions are intended to provide greater financial stability for retirees after years of public service.
With billions already disbursed and additional payments planned, Lagos said it remains focused on reducing pension liabilities and improving retirement welfare.
The government described the progress recorded under both the CPS and DBS as evidence of its continued commitment to pensioners.
It added that the sustained interventions have strengthened Lagos’ position as one of the states seeking to improve pension administration and retiree welfare in Nigeria.
