Ogun Workers Threaten Dapo Abiodun With Strike Action Over Unpaid N40b Pensions

By: Abdulwasiu Akintunde 

The organized labuor unions in Ogun State have threatened to take industrial action due to the State Government's failure to remit over N40 billion in contributory pensions deducted from workers' salaries over the past 15 years.

OPEN TELEVISION Naija reports that the unions involved include the Trade Union Congress (TUC), the Nigeria Labour Congress (NLC), and the Joint Negotiation Council (JNC). 

They disclosed their intentions in a joint letter sent to Governor Dapo Abiodun. The letter, a copy of which was made available to the press, was signed by the State Chairman of TUC, Comrade Akeem Lasisi, his NLC counterpart Hammed Benco-Ademola, and JNC Chairman Isa Olude.

The unions stated that despite the establishment of a committee to address this issue in October 2022, Governor Abiodun's Government has not made the committee's report public. 

They felt compelled to write to the Governor because, with less than a year until July 1, 2025—the effective date for the Contributory Pension Scheme as stipulated by the 2013 State Pension Reform Law amended in 2008, there is no indication that the Government is serious about implementing the scheme. 

The unions emphasized that "we are talking about over N40 billion in unremitted deductions. The government owes a total of over 160 months."

"Former Governor Gbenga Daniel left office with 25 months of unpaid contributions. Ex-Governor Ibikunle Amosun paid only for 9 months out of his eight-year tenure, and Governor Dapo Abiodun has not made any payments since taking office in 2019."

The unions stated that the Government has failed to remit 7.5% of contributory pensions deducted monthly from each worker's salary for over 15 years to the Pension Fund Administrators (PFA). 

Additionally, the Government has not paid its own 7.5% contribution, totaling 15% of each worker's salary that should go to the PFA.

OPEN TELEVISION Naija further reports that the workers expressed their frustration, stating they cannot ignore the situation when their future welfare is uncertain due to the Government's mishandling of the pension fund over the years.

The letter partially reads: "After thoroughly and objectively assessing the entire Contributory Pension Scheme from its legislation and implementation to its current status, it is clear that we are headed for industrial unrest in the State Civil/Public Service. The State has consistently shown poor performance with this scheme, and nothing has changed. Up until now, the report of the much-publicized Committee set up in October 2022 has not been made public."

Your Excellency, as July 1, 2025, approaches, the effective date for the Contributory Pension Scheme under the Ogun State Pension Reform Law, 2008 (amended 2013), there is growing concern about the State Government's true commitment to the welfare of its workforce after retirement.

OPEN TELEVISION Naija further gathered from labour sources that the reality on ground is that the scheme has not been successful in the State. The large amount of unremitted deductions over the past fourteen years presents a significant debt that even a welfare-focused State would struggle to repay. Our involvement in the committee on the Contributory Pension Scheme has given us access to accurate statistics of the scheme.

According to them, given the financial demands, it might be necessary to postpone the scheme to a later date when the State's finances can better support it. 

However, right now, all employees in the Ogun State Civil/Public Service are eager to understand their future before July 1, 2025.

We urge the immediate release of the Committee's report on the Contributory Pension Scheme and the State Government's White Paper on it. 

This transparency would help alleviate the tension, which is exacerbated by the severe economic challenges affecting our homes.", the labour sources reveal.