The 2026 Appropriation Bill has earmarked N1.38tn for pensions, gratuities, and retirees’ benefits across Federal Government agencies, security services, parastatals, and universities.

Under the allocation, the Office of the Head of Civil Service will receive N94.54bn for civilian pensions, including gratuities, pension running costs, and unfunded liabilities, while civil service pensions alone account for N60.34bn. Arrears from 2024 pension increments are set at N30.58bn.

Military pensions and gratuities have been allocated N486.04bn, covering expected retirees (N130.38bn), pensions and gratuities (N237.25bn), death benefits (N98.53bn), and administrative costs. Additional provisions include medical retirees and arrears from January 2019 to December 2021.

Security agencies are also covered, with the Department of State Security receiving N28.61bn, the Nigeria Intelligence Agency allocated N23.54bn, and police pensions set at N18.53bn. The Customs, Immigration and Prisons Pension Office will get N18.41bn.

Parastatals and universities will share N207.81bn, while the National Pension Commission has been allocated N427.04bn for gratuities, pension protection, and consequential adjustments. Other allocations include benefits for former heads of service, retired professors, EFCC retirees, and group life assurance for all MDAs, totalling N2.19tn under service-wide votes.

The pension provisions form a significant part of the 2026 budget, reflecting the federal government’s commitment to meeting obligations to retirees while managing arrears and unfunded liabilities.