2026 Budget Allocates N1.38tn for Pensions, Retirees’ Benefits

The 2026 Appropriation Bill has earmarked N1.38 trillion for pensions, gratuities, and retirees’ benefits across Federal Government agencies, security services, parastatals, and universities.
The Office of the Head of Civil Service will receive N94.54 billion for civilian pensions, covering gratuities, running costs, and unfunded liabilities. Of this, N60.34 billion is for civil service pensions, with N30.58 billion set aside to cover arrears from 2024 pension increments.
Military pensions and gratuities have been allocated N486.04 billion, which includes provisions for expected retirees (N130.38 billion), pensions and gratuities (N237.25 billion), death benefits (N98.53 billion), and administrative costs. Additional funds will cover medical retirees and arrears from January 2019 to December 2021.
Security agencies are also supported, with the Department of State Security receiving N28.61 billion, the Nigeria Intelligence Agency N23.54 billion, and police pensions N18.53 billion. The Customs, Immigration, and Prisons Pension Office will get N18.41 billion.
Parastatals and universities are allocated N207.81 billion, while the National Pension Commission (PenCom) will receive N427.04 billion for gratuities, pension protection, and consequential adjustments. Other provisions include benefits for former heads of service, retired professors, EFCC retirees, and group life assurance for all MDAs, bringing total service-wide votes to N2.19 trillion.
The pension allocations form a significant part of the 2026 budget, underscoring the Federal Government’s commitment to meeting obligations to retirees while addressing arrears and unfunded liabilities.