FG Allocates ₦1.38 Trillion for Pensions in 2026 Budget
The Federal Government of Nigeria has proposed a ₦1.376 trillion allocation for pensions, gratuities, and retirees’ benefits in the 2026 Appropriation Bill, reflecting a significant commitment to social security and ageing workforce concerns.
The proposed ₦1.38 trillion figure covers retirement allowances across diverse public service sectors, including:
- Civilian pensions under the Office of the Head of Civil Service – ≈₦94.5 billion
- Military pensions and gratuities – ≈₦486 billion
- Paramilitary and intelligence service pensions – DSS, NIA and other
- Pension Transitional Arrangement Directorate (PTAD) – ≈₦285.6 billion
- Parastatals, universities & railway pensions – substantial contributions to long‑standing retirement obligations.p
Government Efforts Beyond the Budget Line
Nigeria’s Pension Transitional Arrangement Directorate (PTAD) and National Pension Commission (PenCom) are actively managing enhancements to the pension system:
- Arrears disbursement: PTAD recently paid ₦8.6 billion in pension arrears to 148,625 retirees, helping clear backlog and easing financial pressure on pensioners.
- Pension liabilities bond: The Federal Government had previously approved a ₦758 billion bond to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS), signaling commitment to clearing historic debts.
The Federal Government’s proposal to allocate ₦1.38 trillion for pensions in the 2026 budget is a strong signal of commitment to retirees and social welfare obligations. At a time of fiscal tightening and competing development needs, prioritizing pension payments reflects the government’s recognition that retirement security is essential to economic stability and social cohesion.
However, For pensioners, the allocation raises expectations of more consistent payments and fewer arrears. For policymakers and financial analysts, it highlights the growing weight of pension liabilities in Nigeria’s public finances.
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