Striking workers in Ogun State have turned down offers from Governor Dapo Abiodun aimed at ending their ongoing industrial action. The strike, which began over the unremitted N82 billion contributory pension deductions spanning 14 years, as well as other unresolved issues, will continue.
The workers' decision was conveyed in a communiqué issued Friday, signed by 25 affiliate unions under the organised labour, after a seven-hour emergency meeting held in Abeokuta.
The unions stated that their discussions with the governor on Thursday covered issues including the Contributory Pension Scheme (CPS), implementation of the new minimum wage and consequential adjustments, eight years of unpaid leave allowances, pension adjustments, and promotion arrears for 2023 and 2024.
Following a thorough review of the government’s proposals, the organised labour expressed dissatisfaction, particularly with the government’s stance on the CPS. As such, they resolved to maintain their initial position, affirming that the trade dispute declared in their July 14, 2025 letter remains valid.
Meanwhile, Governor Abiodun, through his Chief Press Secretary, Mr. Lekan Adeniran, outlined plans to address the concerns. He announced that retirees from July 2, 2025, would receive immediate payments under a phased 10-year plan—Phase 1 covering 2025–2030 and Phase 2 from 2030–2035.
The governor explained that payments would span beyond his tenure (ending 2027) and include his successor’s administration. From July 2, 2025, the gratuity scheme would be discontinued, and all salaries would revert to the CPS.
He also noted that previous pension managers were unqualified, which contributed to delays, but promised immediate enrolment of employees under CPS, with proper Pension Fund Administrators (PFAs) to be engaged.
Abiodun disclosed that the state had already paid inherited leave allowances up to 2013, while N8 billion owed for 2014–2022 would be paid in installments. Additionally, N37 billion in gratuities and N163 billion in pensions had been paid to retirees from 2019 to date. Promotions held over five years would see payment of arrears for 2023 and 2024 beginning in September and December 2025 respectively.
The strike began in response to the 2013 amended pension law, which set July 1, 2025, as the start date for the CPS, mandating a monthly 7.5% contribution each from employers and employees.
Organised labour criticized the scheme's implementation, calling it a legal breach and a wage-reduction strategy. They revealed that only 34 out of 204 expected monthly remittances over 17 years were paid by the state and local governments. For the past 14 years, deductions were made from workers’ salaries but were not remitted to their PFAs.
They also highlighted lost investment opportunities and interest earnings, saying the situation amounted to systematic shortchanging of workers. The workers insist that unless the state government addresses the irregularities in the CPS transparently, it must suspend its implementation and revert to the old pension scheme.
ADEOLA KUNLE
