2026 Budget: FG Sets Aside N1.38tn For Pensions and Gratuities

The 2026 Appropriation Bill allocates N1.38tn for pensions, gratuities, and retirement benefits across Federal Government agencies, security services, parastatals, and universities.

Under the breakdown, the Office of the Head of Civil Service is set to receive N94.54bn for civilian pensions, covering gratuities, running costs, and unfunded liabilities, with civil service pensions alone accounting for N60.34bn. Arrears from the 2024 pension adjustments are estimated at N30.58bn.

Military pensions and gratuities have been earmarked N486.04bn, including provisions for expected retirees (N130.38bn), pensions and gratuities (N237.25bn), death benefits (N98.53bn), and administrative expenses. Additional allocations cover medical retirees and arrears from January 2019 to December 2021. Security agencies are also included, with the Department of State Security allocated N28.61bn, the Nigeria Intelligence Agency N23.54bn, police pensions N18.53bn, and the Customs, Immigration and Prisons Pension Office N18.41bn.

Parastatals and universities are set to share N207.81bn, while the National Pension Commission will receive N427.04bn for gratuities, pension protection, and consequential adjustments. Other provisions include benefits for former heads of service, retired professors, EFCC retirees, and group life assurance across all MDAs, bringing service-wide votes to a total of N2.19tn.

These pension allocations represent a major component of the 2026 budget, underscoring the federal government’s commitment to meeting obligations to retirees and addressing arrears and unfunded liabilities.