Striking Ogun workers insist on pension scheme cancellation

The striking workers of Ogun State, on Friday, rejected Governor Dapo Abiodun’s plea for resumption, insisting on the cancellation of the state’s contributory pension scheme.

After a seven-hour meeting held with the governor in Abeokuta, the workers declared that the government should either cancel the CPS or shift its implementation to 2042 as recommended by a committee set up to look into its implementation.

In a communique issued after the meeting and signed by 25 affiliated unions of the Nigeria Labour Congress, Trade Union Congress as well as Joint Negotiating Council, the workers said until the government bowed to their demands, the indefinite strike would continue.

The state workforce had embarked on indefinite strike since Tuesday over the insistence of the government to go ahead with the implementation of the CPS from July 1st, 2025 as stipulated in 2013 pension amended law.

The workers cited lots of irregularities like non-remittance of over N82bn deducted from the workers’ salaries over 14 years, but were never remitted to the appropriate pension fund administrators.

Abiodun had on Thursday pledged that his administration would ensure immediate payment for workers who retire from July 2, 2025, through the CPS.

In a statement sent to journalists on Friday by his Chief Press Secretary, Lekan Adeniran, the governor also indicated that a 10-year payment plan would commenced 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, “What is key is that we have decided that in Phase 1, we will pay outstanding contributions to 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 enrollment and registration of all employees under the CPS after relevant Pension Fund Administrators have been chosen.

But the organised labour, however, said while it had accepted the position of the government on the new minimum wage, and its consequential adjustments, as well as payment of eight years arrears of leave allowance, consequential adjustments on pension and promotion of staff for 2023, and 2024, it rejected the position of the government on the controversial CPS.

The communique read, “We however note that the thrust of our displeasure squarely centres on item (i), i.e. the Contributory Pension Scheme.

“The prayer of the entirety of the state and local governments’ civil/public servants is the outright cancellation of the dysfunctional Contributory Pension Scheme, or its commencement date to 2042 as recommended by the Adekunle Hassan-led Committee.

“Council-in-session, therefore, resolved that its initial take of the congress as contained in its letter of Monday, 14th July, 2025 stands.”