2026 Budget: FG Allocates N1.38 trillion for Pensions and Retirees’ Benefits
2026 Budget: FG Allocates N1.38 trillion for Pensions and Retirees’ Benefits
The Federal Government has earmarked N1.38 trillion in the 2026 Appropriation Bill for pensions, gratuities, and other benefits for retirees across federal agencies, security services, parastatals, and universities. This allocation shows the government’s commitment to meeting pension obligations, addressing arrears, and ensuring financial support for retirees.
Civil Service Pensions
The Office of the Head of Civil Service will receive N94.54 billion for civilian pensions, covering gratuities, running costs, and unfunded liabilities. Out of this, N60.34 billion is specifically for civil service pensions, while arrears from 2024 pension increments are set at N30.58 billion.
Military and Security Pensions
Military pensions and gratuities account for the largest share at N486.04 billion, which includes:
Expected retirees: N130.38 billion
Pensions and gratuities: N237.25 billion
Death benefits: N98.53 billion
Administrative costs and provisions for medical retirees and arrears from 2019–2021
Security agencies are also well covered:
Department of State Security: N28.61 billion
Nigeria Intelligence Agency: N23.54 billion
Police pensions: N18.53 billion
Customs, Immigration, and Prisons Pension Office: N18.41 billion
Parastatals, Universities, and National Pension Commission
Parastatals and universities will share N207.81 billion to support retirees. Additionally, the National Pension Commission (PenCom) has been allocated N427.04 billion for gratuities, pension protection, and adjustments to ensure stability in the pension system.
Other provisions include benefits for former heads of service, retired professors, EFCC retirees, and group life assurance for all MDAs, totaling N2.19 trillion under service-wide votes.
“The 2026 budget allocations for pensions reflect the government’s commitment to securing the financial wellbeing of retirees while addressing long-standing arrears and obligations,” a senior finance official said.
What Nigerians Should Know
This budget provision is a signal that:
Retirees across civil service, military, security agencies, and parastatals can expect timely pensions and gratuities
Arrears from past increments are being addressed, giving retirees back payments they are owed
The government is strengthening the pension system through PenCom, ensuring long-term sustainability and protection for all contributors
For Nigerian workers and future retirees, this demonstrates the importance of contributing to the pension scheme and staying informed about government provisions that affect financial security after service.
The N1.38 trillion pension allocation in the 2026 budget highlights the government’s commitment to supporting retirees and ensuring that both current and past obligations are met. Nigerians should see this as a step toward financial stability and guaranteed retirement benefits.
