Lagos Pension Payments Reach N168.2bn Since 2007

The Lagos pension payments have reached N168.2bn for more than 48,000 retirees since 2007, according to the state government.

The Lagos State Government disclosed the figure in a Facebook post on Tuesday while responding to concerns from retirees who protested over pension payments in the state.

The government said the Lagos State Pension Commission (LASPEC) had paid the cumulative amount under the state’s Contributory Pension Scheme (CPS) since 2007.

“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 also said it had paid N92bn in accrued rights to more than 25,000 retirees between May 2019 and Tuesday.

It explained that accrued rights cover both the gratuity and pension owed to retiring public officers.

“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,” the government said.

As part of efforts to strengthen the pension system, the state increased pension contribution rates in 2020. Employers now contribute 10 per cent, while employees contribute eight per cent, according to the government.

The state also pointed to a N5bn payment made to 1,963 retirees in July 2024. It said the payment cleared the outstanding backlog of pension obligations under the CPS.

“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,” it stated.

The government said it had also introduced faster gratuity payments for sick pensioners. Meanwhile, the pension component continues to go into retirees’ Retirement Savings Accounts.

It added that welfare programmes take place twice a year to support retirees as living costs rise.

For pensioners under the Defined Benefits Scheme (DBS), the government said it extended the N25,000 wage award given to serving state workers to more than 10,000 retirees between December 2023 and February 2024.

The state later announced further increases of 20 per cent and 28 per cent in March 2025. In May 2026, it said it matched the Federal Government’s N32,000 pension wage award for its DBS retirees.

According to the government, the measures increased the pension wage bill by more than 100 per cent.

The state also provided an update on its latest Lagos pension payments. LASPEC has paid more than N4bn to 1,862 retirees in 2026, with another N1bn planned for 700 retirees within the following week.

“True to this tradition of prompt and consistent payment, LASPEC has, so far this year, paid 1,862 retirees a total of over N4 billion, and is poised to disburse a further N1 billion to another 700 retirees within the next one week,” it stated.

The government said the various interventions demonstrate the Sanwo-Olu administration’s stated commitment to improving the welfare of retired public servants in Lagos.

Do you think these pension interventions are enough to address the concerns of Lagos retirees?