Organized labour unions in Ogun State have threatened 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.
The unions, including the Trade Union Congress, Nigeria Labour Congress, and Joint Negotiation Council, expressed their grievances in a joint letter to Governor Dapo Abiodun on Tuesday.
This letter, accessible to newsmen, was signed by Comrade Akeem Lasisi, State Chairman of TUC, Hammed Benco-Ademola, his NLC counterpart, and JNC Chairman, Isa Olude. The unions highlighted the state’s non-compliance despite forming a committee in October 2022 to address this issue. The government has not disclosed the committee’s findings.
The unions’ concern is amplified as the effective date for the Contributory Pension Scheme, July 1, 2025, approaches under the 2013 State Pension Reform Law, amended in 2008. They argue that the government’s actions do not reflect a genuine commitment to implementing the pension scheme.
The unions stated, “We are talking of over N40 billion unremitted deductions. The government all together owed over 160 months. Former Governor Gbenga Daniel owed 25 months before he left office. Ex-governor Ibikunle Amosun paid just only nine months out of his eight-year tenure, while Governor Dapo Abiodun has not paid a dime since he came into office in 2019.”
The unions revealed that the government has failed to remit 7.5% contributory pensions deducted monthly from each worker’s salary for over 15 years. Additionally, the government has not paid its counterpart contribution of 7.5%, totaling 15%, to the Pension Fund Administrators.
The unions emphasized that workers’ welfare in retirement is at risk due to the mismanagement of their pension funds. The letter further stated, “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, really. 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 debts that even a welfarist state would have some measure of restraints in an attempt to offset it.
“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.”
