Sanwo-Olu Clears All Outstanding Pension in Lagos…Enacts pay-as-you-go policy

Rebecca Ejifoma

Governor Babajide Sanwo-Olu of Lagos State has successfully cleared all pension backlogs, fulfilling a promise he made earlier this year.

The state government paid ₦4.46 billion to 2,000 retirees, marking the end of outstanding pension arrears.

Since taking office, Sanwo-Olu’s administration has paid over N68 billion into the Retirement Savings Accounts of retirees across various government departments.

The state has implemented a “Pay As You Go” pension model, ensuring that future retirees receive their full benefits and gratuity immediately upon retirement.

To further support retirees, Lagos State has launched a new Health Insurance Scheme specifically designed for them. It provides access to a wide range of medical services.

This achievement follows a previous payment of N3.1 billion to 1,013 retirees in February, demonstrating the government’s commitment to addressing pension liabilities.

Sanwo-Olu congratulated the new batch of retirees, stating that the settlement of the state’s pension backlog has transitioned Lagos pension administration from servicing a liability to an era of pay-as-you-go.

He assured the pensioners that fresh retirees would no longer wait endlessly to access their pension owing to the new policy in place.

“Today, we effectively cleared all pension backlog in Lagos State with the payment of ₦4.461bn to 2,000 retirees.

“In February, we paid ₦3.1 billion to 1,013 retirees with a promise to settle all arrears and current pension liabilities, and that promise has been fulfilled today,” he added.

Since the inception of this administration, the governor noted their achievements. “We have paid a sum of N68.164bn into the Retirement Savings Accounts of retirees in the Mainstream, Local Government, State Universal Basic Board (SUBEB), Teaching Service Commission (TESCOM) and other Parastatals of the State Government.”

He emphasised that employees of the state government, who retire from the civil service, would get their full pension benefits and gratuity immediately after retirement.

“Lagos State continues to lead in pension benefits administration with a Pay As You Go template,” he said.

Sanwo-Olu, however, commended the LASPEC Director-General, Babalola Obilana for the achievement, highlighting a renewal of tenure for him.

Speaking earlier, Obilana congratulated the retirees, urging them to make good use of their pension when credited.

He also said the settlement of all backlogs of accrued rights demonstrated a significant mileage in public service.

The DG added that the development reflected the governor’s dedication to addressing the challenges faced by our retirees.

He, however, warned the retirees against possible activities of scammers who may be out to swindle them.

The representative of retirees at the event, Mrs Rachael Thompson, thanked the state government for the development and prayed for divine guidance for the governor and his team.