On Tuesday, organized labour unions in Ogun State threatened to embark on industrial action due to the government’s failure to remit over N40 billion in contributory pensions deducted from workers’ salaries over the last 15 years.
The unions, including the Trade Union Congress (TUC), the Nigeria Labour Congress (NLC), and the Joint Negotiation Council (JNC), expressed their concerns in a letter addressed to Governor Dapo Abiodun. The letter, a copy of which was obtained by our correspondent, was signed by TUC Chairman Akeem Lasisi, NLC Chairman Hammed Benco-Ademola, and JNC Chairman Isa Olude.
The unions highlighted that despite the formation of a committee to address this issue in October 2022, the current administration has yet to release the committee’s report. With less than a year remaining until July 1, 2025, the effective date for the Contributory Pension Scheme according to the 2013 State Pension Reform Law amended in 2008, the unions assert that there has been no tangible progress toward the implementation of the scheme.
“We are talking about over N40 billion in unremitted deductions. The government collectively owes over 160 months,” the unions stated. They detailed that former Governor Gbenga Daniel left office owing 25 months, while former Governor Amosun paid only nine months during his eight-year tenure. Governor Abiodun, since taking office in 2019, has not made any payments.
The unions also noted the government’s failure to remit the 7.5% contributory pensions deducted monthly from each worker’s salary to the Pension Fund Administrators, nor has the government paid its counterpart contribution of 7.5%.
The workers expressed their concerns over their uncertain future, with no assurance of their welfare in retirement due to the handling of their pension funds. The letter emphasized, “Having thoroughly and objectively assessed the entire Contributory Pension Scheme from its legislation, implementation, and current position, we conclude that we are fully set for industrial unrest in the State Civil/Public Service.
“The State has maintained an unencouraging stance on the scheme with a disturbing trend that nothing has changed. The much-publicized committee report from October 2022 has not been made public.
“With July 1, 2025, approaching, which is the effective date for the Contributory Pension Scheme under the Ogun State Pension Reform Law, 2008 (amended 2013), there is growing apprehension about the government’s genuine interest and commitment to the welfare of its workforce post-retirement.”
The unions urged the government to release the committee report and the State Government White Paper on the Contributory Pension Scheme to alleviate the tension exacerbated by the ongoing economic difficulties
