The Lagos State Government under Governor Babajide Sanwo-Olu has paid N92 billion in accrued pension rights to more than 25,000 retirees since the administration assumed office in May 2019.
The Director-General of the Lagos State Pension Commission (LASPEC), Babalola Obilana, disclosed this in a statement on Monday, describing the payment as part of the administration’s sustained effort to settle pension obligations and improve the welfare of retired public servants.
Obilana said the administration’s intervention culminated in a landmark N5 billion payment to 1,963 retirees in July 2024, which cleared all outstanding backlogs of accrued rights under the Contributory Pension Scheme (CPS).
He explained that accrued rights covered both the gratuity and pension components owed retiring public servants, adding that the Sanwo-Olu administration had prioritised the prompt settlement of both.
The LASPEC boss said the state had, in total, paid N168.2 billion to more than 48,000 retirees since 2007, with the bulk of the recent payments coming under the current administration.
He revealed that the Sanwo-Olu administration also took steps to strengthen the long-term financial security of workers by increasing pension contribution rates in 2020 to 10 per cent for employers and 8 per cent for employees.
According to Obilana, the policy was designed to grow the pension funds available to workers at retirement and improve the sustainability of the scheme.
He said the government had also introduced expedited gratuity payments as an immediate intervention for sick pensioners, while the pension component continued to be paid into their Retirement Savings Accounts in line with due process.
Obilana added that LASPEC conducts welfare programmes twice yearly to support retirees and cushion the impact of rising living costs.
He said the administration’s commitment to pensioners had continued in 2026, with LASPEC paying more than N4 billion to 1,862 retirees so far this year.
He revealed that another N1 billion was scheduled to be disbursed to about 700 retirees within the following week.
Obilana said the series of interventions demonstrated the Sanwo-Olu/Hamzat administration’s commitment to protecting the dignity and welfare of retired public servants.
He maintained that the clearance of the CPS backlog and sustained payments had strengthened Lagos State’s position as a leading example of pension administration in Nigeria.