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Home Business & Finance Business Sustainability

Lagos pensioners issue ultimatum over pension increase

Victory Emmanuel by Victory Emmanuel
August 25, 2026
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Contributory pensioners demand implementation by August 31, warning of a mega protest at Alausa if the Lagos Government fails to act

Hundreds of contributory pensioners under the Nigeria Union of Pensioners marched through parts of Lagos on Monday, August 24, 2026, demanding the immediate implementation of a pension increase they said had already been approved, and warning the Lagos State Government of a larger protest if the matter remains unresolved by August 31.

Also read: Pensioners plan naked protest over unpaid arrears

The pensioners, under the Nigeria Union of Pensioners, Contributory Pension Scheme, accused the Lagos State Government and the Lagos State Pension Commission of delaying the adjustment despite previous assurances that the increase would be implemented.

The warning protest was intended to give the authorities a final opportunity to resolve the matter before the union mobilises pensioners across the state for a larger demonstration at Alausa.

Speaking to The PUNCH, the union’s secretary, Olagbaye Johnson, said the protest was driven by growing frustration among elderly residents who are struggling with rising living costs.

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“What brought about today’s warning protest is to give the government an ultimatum: if we do not get a response by August 31, there will be a mega protest,” Johnson said.

The pensioners said their demand followed the Federal Government’s decision to review benefits for contributory pensioners at the national level, arguing that Lagos should similarly adjust benefits for its own retirees.

Johnson said the pensioners had previously approached officials at the Governor’s Office and were assured that Lagos would implement the increase if the Federal Government did so.

“We have been suffering, and President Bola Tinubu approved N758bn for contributory pensioners at the federal level.

Whatever happens at the federal level should also happen at the state level because the Contributory Pension Act is exclusive,” he said.

According to the union, it subsequently obtained the Federal Government’s template for the adjustment and submitted it to the Lagos State Head of Service and the leadership of the pension commission.

Johnson said an actuarial valuation was completed in May, but that the pensioners had since experienced what he described as prolonged foot-dragging.

“Actuarial valuators completed their work in May this year, and since then, there has been foot-dragging. We have been going to the Head of Service, Mr Agoro, and the Governor’s Office, but our people are dying,” he said.

The pensioners are also worried that prolonged delays could push the issue into the next administration following the 2027 general election.

Johnson said the union feared that a commitment made by the present administration could eventually become an obligation for its successor if the increase was not implemented before the election.

“We are concerned that if the election is held, the promise to pay may be transferred to the next administration,” he said.

The union said its members had already been mobilised across Lagos and were prepared to return to Alausa in greater numbers.

“We have mobilised ourselves across our 26 zones in Lagos, and all of us will be at Alausa next week if we do not hear positively from the government,” Johnson said.

The threatened escalation comes as pensioners across Nigeria continue to press governments over retirement benefits and the impact of the rising cost of living.

For the Lagos pensioners, however, the immediate concern is the implementation of the increase they say has already gone through the necessary assessment process.

Pension commission highlights payment record

The Lagos State Pension Commission, LASPEC, responded to the development by highlighting the Sanwo-Olu administration’s record of pension payments rather than directly addressing the August 31 deadline set by the protesters.

In a statement made available to The PUNCH on Monday, LASPEC described the administration’s pension record as “the most outstanding performance on pension matters in the history of the State”.

The commission said the Lagos Government had paid N168.2bn to more than 48,000 retirees from 2007 to date, including N92bn in accrued rights to more than 25,000 retirees since Governor Babajide Sanwo-Olu assumed office in May 2019.

LASPEC explained that accrued rights cover both gratuity and pension components owed to retiring officers, adding that the administration had prioritised settling both obligations.

The commission also pointed to the 2020 decision to increase pension contributions to 10 per cent for employers and eight per cent for employees.

It described the measure as a deliberate intervention aimed at strengthening the pension fund available to workers at retirement and improving the long-term sustainability of the contributory scheme.

LASPEC further cited a N5bn payment to 1,963 retirees in July 2024, which it said cleared outstanding pension obligations under the Contributory Pension Scheme.

The commission said it had also introduced expedited gratuity payments for sick pensioners, while pension components continued to be paid into retirees’ Retirement Savings Accounts.

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On welfare, LASPEC said the state government conducts relief programmes twice annually for retirees affected by increasing living costs.

The commission also highlighted interventions for pensioners under the Defined Benefits Scheme, including N25,000 wage awards paid to more than 10,000 retirees between December 2023 and February 2024.

According to LASPEC, pensioners under that category subsequently received increases of 20 per cent and 28 per cent in March 2025.

The commission said it had paid 1,862 retirees more than N4bn in 2026 and planned to disburse another N1bn to about 700 retirees within a week.

“True to this tradition and to sustain the momentum of prompt and consistent payment, LASPEC has, so far this year, paid 1,862 retirees a total of over N4bn, and is poised to disburse a further N1bn to another 700 retirees within the next one week,” the commission said.

The figures underline the scale of the state’s existing pension commitments, but they do not directly answer the pensioners’ central question over when the latest increase will be implemented.

A public affairs officer with LASPEC, Titilayo Ajirotutu, also questioned why the pensioners proceeded with the protest.

“I don’t know why they are still going ahead with the protest,” Ajirotutu said. “They have said they should calm down.”

Asked about the pensioners’ claim that the actuarial assessment had been completed in May, Ajirotutu disputed the assertion and stressed that LASPEC was not the only agency involved in the process.

“Are they the ones in our office? They are not the ones in government. It is not only LASPEC,” she said.

The response leaves the dispute at an uneasy stage.

The pensioners are demanding a clear commitment and implementation timeline, while LASPEC is pointing to its broader record of pension payments and welfare interventions without confirming whether the latest increase will be paid before the protesters’ August 31 deadline.

For the elderly pensioners, the issue is more immediate. With household expenses continuing to rise, they say delays in adjusting their benefits are placing an additional burden on people who depend largely on retirement income.

The coming days will therefore be crucial for both sides.

Also read: Nigeria Union of Pensioners denounces planned naked protest

A positive response from the government could avert the threatened mega protest, while failure to address the demand before August 31 could trigger a significantly larger mobilisation at Alausa.

Victory Emmanuel
Victory Emmanuel

Victory Emmanuel is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.

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