The Governor of Lagos State, Babajide Sanwo-Olu, has declared that the state has no outstanding pension arrears. He said retirees remain a top priority of his administration and assured that all verified pensioners are being paid their entitlements without delay.
The governor made this known during a courtesy visit by the senior management team of the Pension Transitional Arrangement Directorate (PTAD) at Lagos House, Marina. The delegation was led by the Executive Secretary of PTAD, Tolulope Odunaiya.
In a statement released on Monday by his Special Adviser on Media and Publicity, Gbenga Akosile, Sanwo-Olu said Lagos State values its pensioners and recognises their years of service to the government and the people.
“We in Lagos State recognise and value the contributions of our pensioners. They have devoted significant parts of their lives to public service, and we remain committed to treating them with the dignity they deserve,” the governor said.
Sanwo-Olu stated clearly that Lagos State has cleared all pension liabilities, especially under the Contributory Pension Scheme.
According to him, Lagos is currently the only state in Nigeria without pension arrears. He explained that over the past three years, his administration worked hard to offset all outstanding payments owed to retirees.
“Currently, Lagos State is the only state without any pension arrears. Over the past three years, we have settled all outstanding obligations. No pensioner can claim that we owe them years of unpaid benefits,” he said.
The issue of unpaid pensions has been a serious concern in many states across Nigeria. In some parts of the country, retirees have staged protests over unpaid entitlements, with some waiting several months or even years to receive their benefits.
Pension payments are important because many retirees depend on them for daily living. After leaving active service, pensions often become their only source of income. Delays can cause hardship, especially in a time of rising cost of living.
Sanwo-Olu said Lagos understands this challenge and has put systems in place to ensure that pensioners do not suffer unnecessary delays.
He added that retirees with complete documentation now receive their pensions within two to three months after leaving service.
“For those who have dedicated their lives to public service, the least we can do is to provide a responsive system that assures them of our appreciation in their later years,” the governor stated.
Nigeria operates two main pension systems in the public sector: the old Defined Benefit Scheme and the Contributory Pension Scheme.
Under the old Defined Benefit Scheme, the government is responsible for paying retirees directly from public funds. However, due to poor funding and record-keeping in the past, many states accumulated pension debts.
To address these challenges, the Federal Government introduced the Contributory Pension Scheme in 2004. Under this system, both the employer and employee contribute to a retirement savings account during the worker’s years of service. The funds are managed by pension fund administrators.
Lagos State was one of the early adopters of the Contributory Pension Scheme and has often been cited as a model for other states.
The Pension Transitional Arrangement Directorate was created to manage pensions under the old Defined Benefit Scheme for federal government retirees. PTAD ensures that pensioners who retired before the contributory system was introduced continue to receive their payments.
During the visit, PTAD Executive Secretary Tolulope Odunaiya said that nearly 200,000 pensioners under the Defined Benefit Scheme nationwide currently reside in Lagos State. She called for continued cooperation between PTAD and the Lagos State Government to ensure smooth service delivery.
She noted that Lagos, being Nigeria’s commercial centre, is home to a large number of retirees who worked for the federal government and later settled in the state.
Odunaiya also highlighted recent reforms approved in August 2025 by President Bola Tinubu under the Defined Benefit Pension Scheme.
According to her, the reforms are aimed at strengthening social protection and promoting dignity for senior citizens across the country. She said the changes are designed to improve payment processes and ensure that pensioners receive their benefits more efficiently.
The Federal Government has in recent years taken steps to clean up the pension system. These include verification exercises to remove ghost pensioners and digitising records to improve transparency.
In Nigeria, many retirees rely solely on their pensions, as few have access to private savings or social welfare support. This makes regular and timely pension payments critical for their well-being.
Governor Sanwo-Olu pledged that Lagos State would continue to work closely with PTAD to improve the welfare of pensioners living in the state.
He said collaboration between federal and state institutions is important to ensure that retirees receive the support they need without stress.
For many retirees in Lagos, the governor’s assurance brings hope and relief. In a country where pension delays are common, the promise of prompt payment and respect for senior citizens is welcome news.
As Nigeria continues to reform its pension system, the focus remains on ensuring that those who served the nation for decades can enjoy their retirement years with dignity and financial security.