The 2026 Appropriation Bill has set aside a total of ₦1.38 trillion to cover pensions, gratuities and other retirement benefits across federal ministries, agencies and institutions, including security services, parastatals and universities.
Details of the allocation show that the Office of the Head of the Civil Service of the Federation will
receive ₦94.54 billion to fund civilian pensions. This amount covers gratuities, pension-related
operational expenses and outstanding unfunded liabilities. Of the total, ₦60.34 billion is dedicated
specifically to civil service pensions, while ₦30.58 billion has been earmarked for arrears arising from
pension increases approved in 2024.
Military retirees are allocated a combined ₦486.04 billion for pensions and gratuities. The breakdown
includes ₦130.38 billion for expected retirees, ₦237.25 billion for pension and gratuity payments,
₦98.53 billion for death benefits and additional funds for administrative expenses. The provision also
accommodates medical retirements as well as outstanding arrears covering the period from January
2019 to December 2021.
Security agencies are also captured in the budget. The Department of State Services is allocated ₦28.61
billion, while the Nigeria Intelligence Agency will receive ₦23.54 billion. Police pension payments are
provided for with ₦18.53 billion, and the Customs, Immigration and Prisons Pension Office is assigned
₦18.41 billion.
Parastatals and federal universities are collectively allotted ₦207.81 billion for retirement benefits. In
addition, the National Pension Commission is set to receive ₦427.04 billion to address gratuities,
pension protection schemes and consequential pension adjustments.
Other pension-related provisions in the budget include benefits for former heads of service, retired
professors, Economic and Financial Crimes Commission retirees, as well as group life insurance
coverage for personnel across all ministries, departments and agencies. These service-wide vote items
amount to ₦2.19 trillion.
Overall, pension and gratuity payments represent a substantial component of the 2026 federal budget,
underscoring the government’s stated commitment to fulfilling its obligations to retirees, clearing
outstanding arrears and addressing long-standing unfunded pension liabilities. Reported by Naijagossiper
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