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Police Pension Reform: IG Proposes 200% Gratuity, Salary-Linked Benefits

 

The Inspector-General of Police, Olatunji Disu, has proposed a 200 per cent gratuity and pension benefits linked to officers’ last salaries as the Federal Government considers reforms to address longstanding retirement concerns in the Nigeria Police Force.

Disu disclosed the proposal in Abuja on Sunday, October 25, 2026, noting that it was before a presidential committee established to examine pension-related concerns and recommend sustainable solutions.

The proposal seeks to improve retirement benefits, address outstanding pension liabilities and establish a more efficient pension administration system for serving and retired police personnel.

Under the proposed arrangement, eligible officers would receive pension benefits linked to their last salaries alongside an enhanced gratuity.

Disu said the framework also seeks to accommodate officers who retired before its implementation, with provisions to review their benefits in line with the revised terms.

However, the proposal is not yet an approved entitlement. Disu said its implementation would depend on the committee’s recommendations, government approvals, funding arrangements and relevant implementation guidelines.

The committee includes representatives of the Ministry of Finance, the Office of the Accountant-General of the Federation, the National Salaries, Incomes and Wages Commission, the Budget Office of the Federation and the National Pension Commission (PenCom).

The proposed changes come amid longstanding demands by police personnel and retirees to exit the Contributory Pension Scheme (CPS), which has faced criticism over the adequacy of retirement benefits.

In April 2026, retired police officers protested in Abuja, calling on President Bola Tinubu to approve their exit from the scheme and establish a Nigerian Police Pension Board.

The debate has also raised concerns about the financial implications of changing the pension structure. In November 2024, the Pension Fund Operators Association of Nigeria (PenOp) warned that removing police officers from the CPS could destabilise Nigeria’s financial system.

The association estimated that transitioning to a Defined Benefits Scheme could require N3.5 trillion annually to fund pensions for about 400,000 personnel.

In August 2025, Tinubu directed the immediate rollout of free healthcare for low-income retirees and urged PenCom to resolve the longstanding police pension dispute as part of broader efforts to improve pensioners’ welfare.

Disu said the Federal Government had cleared the backlog of pension payments that previously left some retired officers waiting for up to two years. He added that pension increments had also been introduced, with some beneficiaries receiving almost double their previous payments.

The Inspector-General said the proposed reforms were intended to improve retirees’ access to benefits needed to meet household expenses and medical bills amid rising living costs.

The presidential committee is expected to make recommendations on outstanding liabilities, funding arrangements and benefit administration, with the proposed framework seeking to address concerns affecting both current and former police personnel.

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Àkànní Olúwaségún Michael
Àkànní Olúwaségún Michael
Àkànní Olúwaségún Michael is a Nigerian business and economic journalist covering the Nigerian economy, financial markets, banking, telecommunications, technology, energy and public policy. His reporting focuses on data-driven business developments, corporate performance, market trends and policy decisions shaping Nigeria’s economy.

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