Ogun Labour Unions Threaten Strike Over N40bn Unpaid Pensions

Labour unions in Ogun State have threatened to go on strike due to the government’s failure to remit over N40bn in contributory pensions deducted from workers’ salaries over the past 15 years.

The unions, including the Trade Union Congress, Nigeria Labour Congress, and Joint Negotiation Council, revealed this in a letter addressed to Governor Dapo Abiodun.

The letter, a copy of which was sent to PUNCH was signed by the Chairman TUC, Comrade Akeem Lasisi, his NLC counterpart, Hammed Benco-Ademola and JNC Chairman, Isa Olude.

The labour unions noted that even though a committee was established to address this contentious issue in October 2022, the state government has not made the committee’s report public.

They stated that they were compelled to write the letter 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 evidence demonstrating the government’s commitment to implementing the pension scheme.

The labour unions said, “We are talking of over N40billion unremitted deductions. The government altogether owed over 160 months.

“Former Gov Gbenga Daniel owed 25 months before he left office. Ex-Gov Amosun paid just only 9 months out of his eight-year tenure while Gov. Abiodun has not paid a dime since he came to office in 2019”.

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The unions said the government has refused to remit to Pension Fund Administrators the sum of 7.5% contributory pensions deducted monthly from the salary of each worker for over 15 years.

They added that the government has equally failed to pay its counterpart contribution of 7.5% of each worker’s salary making a total of 15% to the PFA.

The workers said that they cannot pretend that all is well when their fate is hanging in the balance with no hope of having their welfare taken care of in retirement with the way the government has handled their pension fund over the years.

The letter partly read, “Having thoroughly and objectively assessed the entire Contributory Pension Scheme routes from its legislation, implementation vis-a-vis its current position, one cannot but hold the conclusion that we are fully set for industrial unrest in the State Civil/Public Service.

“To the best of our knowledge, the State has maintained its unencouraging showing on the scheme with a rather disturbing trend that nothing has changed.

“Up until now, the Report of the much-publicised Committee on it set up back in October 2022 has not been made public.

“Your Excellency will agree with us, that, as the 1st July 2025 draws nigh, which is the effective date for the Contributory Pension Scheme [Ogun State Pension Reform Law, 2008 (amended 2013)], so also is the justification for the apprehension on the true stand of the State Government on its genuine interest and commitment to the welfare of her workforce, post-retirement.

“Fact is that the Scheme has not fared better in the State and our worries that the humongous unremitted deductions in the last fourteen years plus, no doubts, poses obviously, as that daunting debt that even a welfarist State would have some measure of restraints in an attempt to offset it.”

It added, “Interestingly, our membership of the committee on the Contributory Pension Scheme availed us the available true statistics of the scheme.

“At best, it could well be rested or be shifted to a much later date when finances of the State could accommodate its financial demands.

“For now, Your Excellency, the entire Ogun State Civil/Public Service employees are eager to learn about their fate before 1st July 2025.

“Immediate release of the Report of the Committee on the Contributory Pension Scheme and the release of the State Government White Paper on it would assist in dousing the tension which, unfortunately, is compounded by the grinding economic pains ravaging our homes”.