Ogun State Governor, Prince Dapo Abiodun, has assured organized labour of his administration’s full commitment to implementing the Contributory Pension Scheme (CPS) for public workers, starting July 2025.
The governor made the pledge during a meeting with labour leaders at his Oke-Mosan office in Abeokuta, aimed at addressing grievances that led to the ongoing workers’ strike.
Abiodun announced that the CPS will officially take effect for retirees from July 2, 2025, and unveiled a two-phase payment plan covering a 10-year period.
“Phase One will cater to retirees from July 2, 2025, to July 2030, and begins immediately. Phase Two, covering July 2030 to July 2035, will start next year,” he said.
While his administration will oversee the first five years of the reform, Abiodun emphasized that his successor must continue the process, ensuring long-term stability for pensioners. He also confirmed the discontinuation of the gratuity system from July 2, 2025, as Ogun transitions fully to the contributory structure.
Abiodun acknowledged past failures in pension management due to underqualified personnel and pledged to restructure and empower the state’s pension office in line with PENCOM regulations. Legislation to back the reforms is also in the works.
He disclosed that all employees would soon be enrolled under the CPS once Pension Fund Administrators (PFAs) are selected.
On Other Labour Matters:
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Leave allowances up to 2013 have been cleared. The N8 billion backlog (2014–2022) will be paid in tranches.
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Gratuity payments of ₦37 billion have been disbursed since 2019 to state and local government retirees.
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₦163 billion has been paid in pensions since his administration began.
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Promotion benefits for 2023 will be paid from September 2025, while those for 2024 begin in December 2025.
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A review of basic salaries to reflect economic realities is under consideration.
Calling for continued dialogue, Abiodun appealed to labour unions to avoid strikes that disrupt public service delivery.
Labour Leaders Respond
NLC State Chairman, Comrade Hameed Benco, said the strike stemmed from fears and misinformation surrounding the new pension structure.
TUC Chairman, Comrade Akeem Lasisi, emphasized that the action wasn’t to cripple the economy but to get the government’s attention—especially in light of the recent amendment to the 2006 Pension Reform Act, which took effect on July 1, 2025.
He urged the government to align Ogun workers’ salaries with those of other Southwest states.
