Ogun State Governor, Prince Dapo Abiodun, has announced that his administration will commence full implementation of the Contributory Pension Scheme (CPS) for state workers from July 2025.
The governor made this pledge during a meeting with organized labor leaders at the governor's office in Oke-Mosan, Abeokuta, addressing concerns that led to the ongoing strike by state workers.
According to Governor Abiodun, the administration will ensure immediate payment for workers who retire from July 2, 2025, through the Contributory Pension Scheme. He outlined a comprehensive 10-year payment plan that will be implemented in two phases.
"What is key is that we have decided that in phase one, we will pay outstanding contributions for retirees who have retired from July 2, 2025, to July 2030. We will make that immediate payment," the governor stated.
"Next year, we will make the second payment, which will be phase 2, for those who will be retiring from July 2, 2030, to July 1, 2035," he added.
The governor emphasized that this arrangement would cover payments for the remaining two years of his tenure and extend eight years into his successors' administrations, ensuring long-term stability for the pension scheme.
Governor Abiodun also announced that the gratuity scheme would be discontinued from July 2, 2025, with all consolidated salaries reverting to the Contributory Pension Scheme. He promised that appropriate laws would be enacted to support these decisions.
The governor revealed that his administration had already paid N37 billion as gratuities to local government and state retirees and N163 billion as pension to both local and state workers since 2019.
Addressing other labor concerns, Governor Abiodun announced that payments for workers promoted in 2023 would commence in September 2025, while those promoted in 2024 would receive their payments in December 2025. He also assured labor leaders that the government would review workers' basic salaries for necessary adjustments.
In response, the State Chairman of the Nigeria Labour Congress (NLC), Comrade Hameed Benco, explained that labor had resorted to strike action due to rumors, insinuations, and fears about the implementation of the Contributory Pension Scheme.
The State Chairman of the Trade Union Congress (TUC), Comrade Akeem Lasisi, clarified that the strike was not intended to cripple the state's economy but to get the governor's attention, especially with the coming into force of the amendment of the 2006 Pension Reform on July 1, 2025.
Lasisi also called on the state government to adjust the basic salaries of state workers to be comparable with those of other states in the southwest region.
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