The Federal Government of Nigeria has disbursed ₦3.4 trillion in pensions and gratuities since 2013

Key takeaways:

  • Since 2013, the Nigerian government has disbursed ₦3.4 trillion in pension and gratuity payments.
  • Pension expenditure jumped from ₦107.4 billion in 2013 to ₦438.6 billion in 2023, a nearly four times increase, showing the rising cost of maintaining pension obligations.
  • While pension spending grew gradually between 2013 and 2018, a significant spike began in 2019 (₦307.4 billion), showing a shift in pension allocations.
  • The highest pension expenditure recorded so far was in 2023, surpassing all previous years.
  • The Need for a Sustainable Pension System – With pension spending climbing yearly, ensuring a sustainable funding model will be crucial for future government budgets.

Since 2013, the Federal Government of Nigeria has spent a staggering ₦3.4 trillion on pensions and gratuities, which is meant to ensure retired workers receive their entitlements. Notably, pension expenditure jumped from ₦107.4 billion in 2013 to ₦438.6 billion in 2023, a nearly quadruple increase, showing the rising cost of maintaining pension obligations.
With Nigeria’s rising population and workforce, rising inflation, and increasing government payroll, pension obligations will only grow. The challenge ahead is balancing fiscal sustainability with ensuring retirees receive what they’ve earned. Efficient pension management is now more important than ever.

Source:

Office of the Accountant General of the Federation

Period:

2013 - 2024
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