Lagos Pays ₦168.2bn Pension Benefits to 48,000 Retirees Since 2007

The Lagos State Government has paid a cumulative ₦168.2 billion in pension benefits to more than 48,000 retirees under its Contributory Pension Scheme since 2007 amid fresh protests by pensioners demanding the implementation of an approved pension increase.

The pensioners under the Contributory Pension Scheme staged a warning protest in Lagos on Monday and gave the state government until August 31 to implement the increase.

The government disclosed this on Tuesday through the Lagos State Pension Commission (LASPEC), highlighting continued efforts to meet its pension obligations and settle outstanding retirement benefits.

LASPEC said the government disbursed ₦92 billion in accrued rights to more than 25,000 retirees between May 2019 and August 2026.

Accrued rights comprise the gratuity and pension components owed to workers upon retirement.

The state also said it paid more than ₦4 billion to 1,862 retirees in 2026, with another ₦1 billion expected to be disbursed to 700 retirees within the following week.

According to the state government, it made a landmark ₦5 billion single-batch pension payment in July 2024, which cleared all outstanding pension backlogs at the time.

Lagos said it has also introduced measures aimed at improving pension welfare and strengthening retirement benefits.

In 2020, the state increased pension contribution rates to 10% for employers and 8% for employees.

It also introduced an expedited gratuity payment policy for sick pensioners, allowing them to receive immediate financial relief while their pension component continues to be paid into their Retirement Savings Accounts.

For retirees under the Defined Benefits Scheme, the government extended a ₦25,000 wage award to more than 10,000 retirees between December 2023 and February 2024.

This was followed by further increases of 20% and 28% for the category in March 2025.

In May 2026, Lagos said it matched the Federal Government’s ₦32,000 wage increase for its Defined Benefits Scheme retirees.

The state said the adjustment pushed its pension wage bill up by more than 100%

In October 2024, the state paid ₦740 million in accrued pension rights to 348 retirees, covering entitlements for services rendered before the introduction of the Contributory Pension Scheme in 2007.

This followed a ₦4.48 billion payment to 1,455 retirees in March 2024, after ₦3.2 billion was paid to 1,013 retirees the previous month.

At the federal level, efforts to address outstanding pension liabilities have also continued.

The National Pension Commission (PenCom) said in December 2025 that it had paid ₦577.26 billion into 1.05 million Retirement Savings Accounts as part of measures to clear outstanding pension liabilities.

The commission later disclosed that 143,248 new Retirement Savings Accounts were registered in the first quarter of 2026, bringing total registrations to 11.18 million.

Despite increased pension disbursements, Nigeria’s pension system continues to face a significant funding gap.

PenCom warned in August 2026 that it could miss its 30% Pension Protection and Preservation target, with 91% of Retirement Savings Accounts remaining unfunded.