Dapo Abiodun: Ogun to begin full implementation of contributory pension scheme from July

Dapo Abiodun, governor of Ogun, says the state government will commence full implementation of the contributory pension scheme (CPS) for workers this July.

Abiodun gave the assurance during a meeting with the leadership of organised labour at the governor’s office in Abeokuta.

According to a statement on Friday, the meeting was convened to address grey areas surrounding the implementation of the CPS and other labour concerns that led to the ongoing strike by workers in the state.

On July 15, organised labour under the Nigeria Labour Congress (NLC) in Ogun state commenced an indefinite strike over the government’s failure to remit pension deductions, implement the national minimum wage, and address other unresolved issues.

The labour also cited the government’s alleged non-compliance with the contributory pension scheme (CPS) established under the Ogun State Pension Reform Law of 2008, amended in 2013.

Speaking during the meeting, the governor said workers who retire from July 2, 2025, would begin to receive their entitlements under the contributory scheme immediately.

He also announced the government will create a phased payment plan covering 10 years, from 2025 to 2035.

“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,” Abiodun said.

“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.”

The governor added that his administration would begin the immediate enrollment and registration of all workers under the CPS once the appropriate pension fund administrators are selected.

‘OGUN TO COMMENCE PAYMENT FOR WORKERS PROMOTED IN 2023-2024’

Abiodun said his administration had already paid inherited leave allowances up to 2013, adding that outstanding allowances from 2014 to 2022 — amounting to N8 billion — would be paid in tranches.

He also said that the sum of N37 billion had been paid as gratuities to retirees at the state and local government levels, while N163 billion had been paid as pension between 2019 and till date.

According to the governor, six promotion exercises had been conducted in the last five years, while workers promoted in 2023 would begin receiving their new salaries in September 2025, while those promoted in 2024 would be paid from December.

“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 to make necessary adjustments.

While calling on the organised 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.

Responding, Hameed Benco, Ogun chairman of the NLC, said the strike action was triggered by “rumours, fears, and insinuations” surrounding the CPS implementation.

On his part, Akeem Lasisi, chairman of the Trade Union Congress (TUC) in the state, said the strike was not intended to cripple the economy but to get the government’s attention.

He said the implementation of the amended 2006 Pension Reform Act — which took effect on July 1, 2025 — had raised concerns among workers.

Lasisi called on the state government to adjust workers’ basic salaries to align with those of other states in the southwest.