As the workers strike enters the third day, Ogun Gov. Dapo Abiodun says his administration will commence full implementation of the Contributory Pension Scheme (CPS) for state workers from July 2025.
Abiodun gave this pledge when he met with the organized labour to address the grey areas in the implementation of the Contributory Pension Scheme (CPS) and other sundry matters that led to the ongoing strike embarked upon by workers in the state.
Speaking at a meeting with the leadership of the organized labour at the governor’s office in Oke-Mosan, Abeokuta, Abiodun said his administration would ensure immediate payment for workers who retire from July 2, 2025, through the Contributory Pension Scheme.
This was just as he indicated that a 10-year payment plan would commence from 2025 to 2030 under the first phase, while the second phase, which would commence next year, would be from 2030 to 2035.
He said with this arrangement, payment would be made for the remaining two years of his tenure, while eight years of payment would be for his successors.
He said: “What is key is that we have decided that in phase one, we will pay outstanding contributions for retirees who have retired from July 2, 2025, to July 2030. We will make that immediate payment.
“Next year, we will make the second payment, which will be phase 2, for those who will be retiring from July 2, 2030, to July 1, 2035.
“We will be making immediate payments for those who will be retiring beyond my tenure in 2027 and beyond the tenure of my successor as well; that is 10 years.
“There will be no gratuity scheme as this will be discontinued from July 2, 2025. All Consolidated Salaries will revert back to the Contributory Pension Scheme.
“A lot of work has gone into this. In the past, we found that those who have been managing our pensions were not actually the right fit for purpose; they were not qualified, and that has made things slower than they should have been.
“Anyone retiring will receive their benefits, and we will provide PENCOM with the resources to ensure that they meet the obligations of those who retire, and that will be done promptly.
“We will pass the appropriate laws to back this decision,” he said.
The governor noted that his administration would ensure the immediate enrollment and registration of all employees under the CPS after relevant Pension Fund Administrators have been chosen.
Abiodun noted that his government had paid inherited leave allowances up to 2013, while the amounts from 2014 to 2022, totaling N8 billion, are yet to be paid, but that it would be paid in tranches.
He disclosed that the sum of N37 billion had been paid as gratuities to local government and state retirees and N163 billion paid as pension to both local and State workers between 2019 till date.
Abiodun said his administration had organized six promotions exercises in the last five years, adding that the payment for 2023 and 2024 will commence in September and December 2025 respectively.
“This evening, I have decided that we will commence payment for those promoted in 2023 in September 2025, while those promoted in 2024 will now be paid in December 2025,” he added.
He assured the labour leaders that the government would look into the basic salary of the workers with a view to making necessary adjustments.
While calling on the organized labour to always find peaceful ways to engage the government on issues affecting workers’ welfare rather than embarking on industrial disputes, Abiodun appreciated them for the support given to his administration since 2019, which has led to the socio-economic development witnessed in the state.
Responding, the State Chairman of the Nigeria Labour Congress (NLC), Comrade Hameed Benco, said labour resolved to embark on the strike as a result of rumours, insinuations, and fears about the implementation of the Contributory Pension Scheme, which had been a source of worry for the workers.
On his part, the State Chairman of the Trade Union Congress (TUC), Comrade Akeem Lasisi, said the action of the labour unions to call for the strike was not to cripple the state’s economy but to get the attention of the governor, especially with the coming into force of the amendment of the 2006 Pension Reform, which came into effect on July 1, 2025.
He called on the state government to adjust the basic salaries of the state workers to be commensurate with those of other states in the southwest of the country.
Persecondnews reports that the organized labour has yet to call off the strike which began on Wednesday, July 16.
Government ministries, parastatals and other offices as well as public schools have been shut.
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