Ogun State’s organized labour unions have threatened to strike over the government’s failure to remit over N40 billion in contributory pensions deducted from workers’ salaries over the past 15 years.
The unions, including the Trade Union Congress (TUC), Nigeria Labour Congress (NLC), and Joint Negotiation Council (JNC), expressed their concerns in a letter to Governor Dapo Abiodun. The letter, signed by TUC Chairman Comrade Akeem Lasisi, NLC Chairman Hammed Benco-Ademola, and JNC Chairman Isa Olude, was obtained by our correspondent.
Despite forming a committee to address the issue in October 2022, the state government has yet to make the committee’s report public, the unions claimed.
They stated that with less than a year until July 1, 2025—the effective date for the Contributory Pension Scheme per the 2013 State Pension Reform Law (amended in 2008)—there has been no progress to suggest the government’s commitment to implementing the scheme.
“We are talking of over N40 billion in unremitted deductions,” the unions stated.
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“The government owes over 160 months in total. Former Governor Gbenga Daniel left 25 months unpaid, Ex-Governor Amosun only paid nine months during his eight-year tenure, and Governor Abiodun has not paid anything since taking office in 2019.”
The unions accused the government of failing to remit the 7.5% monthly contributory pension deductions from workers’ salaries to Pension Fund Administrators (PFA) and of not paying its counterpart contribution of 7.5%, making a total of 15% unremitted.
The unions emphasized that workers’ welfare in retirement is at risk due to the government’s handling of the pension funds.
The letter read, “Having thoroughly and objectively assessed the entire Contributory Pension Scheme routes from its legislation to its current position, one cannot but conclude that we are set for industrial unrest in the State Civil/Public Service.”
The unions noted that the committee report on the Contributory Pension Scheme, established in October 2022, has not been released.
They urged the governor to make the report public to alleviate the workers’ concerns ahead of the July 1, 2025, deadline.
They concluded, “Immediate release of the Committee’s report and the State Government White Paper on it would help douse the tension, which is compounded by the economic hardships affecting our homes.”
