Governor Dapo Abiodun of Ogun State has assured workers that his administration will begin the full implementation of the Contributory Pension Scheme (CPS) from July 2025.
He gave this assurance during a meeting with organised labour to address the grey areas surrounding the CPS implementation and other related issues that led to the ongoing strike by workers in the state.
Speaking at the meeting with labour leaders at the Governor’s Office in Oke-Mosan, Abeokuta, Abiodun stated that his administration would ensure immediate payments under the CPS for all workers retiring from July 2, 2025.
He also revealed that a 10-year payment plan would be introduced, with the first phase running from 2025 to 2030, and the second phase from 2030 to 2035.
He explained that under this arrangement, payments would cover the remainder of his tenure and the first eight years of his successor’s administration.
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 also disclosed that the state government would ensure the immediate enrolment and registration of all employees under the CPS, once the relevant Pension Fund Administrators (PFAs) have been selected.
Governor Abiodun further noted that his administration had cleared inherited leave allowances up to 2013. However, the outstanding amounts from 2014 to 2022, totalling N8 billion, are yet to be paid and would be settled in tranches.
He revealed that N37 billion had so far been paid as gratuities to local and state retirees, while a total of N163 billion had been disbursed as pensions to both local and state workers from 2019 to date.
Abiodun also highlighted that his administration had conducted six promotion exercises in the last five years, adding that payments for the 2023 and 2024 promotions would 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 labour leaders that the government would review the basic salaries of workers with a view to making necessary adjustments.
While appealing to organised labour to adopt peaceful dialogue in resolving disputes rather than resorting to industrial action, Prince Abiodun appreciated their continued support since 2019, which he said had contributed to the socio-economic progress recorded in the state.
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Responding, the State Chairman of the Nigeria Labour Congress (NLC), Comrade Hameed Benco, said the decision to embark on strike was driven by rumours, fears, and uncertainties regarding the CPS, which had been a source of concern for workers.
The State Chairman of the Trade Union Congress (TUC), Comrade Akeem Lasisi, on his part, stated that the strike was not intended to cripple the state’s economy but was aimed at getting the governor’s attention, especially with the amendment to the 2006 Pension Reform Act coming into force on July 1, 2025.
He urged the state government to adjust workers’ basic salaries to align with those of their counterparts in other South-West states.
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