July 18, (THEWILL) — Governor Dapo Abiodun of Ogun State has appealed to labour unions in the state to prioritise peaceful dialogue over industrial actions in resolving labour-related issues.
Abiodun made the appeal during a meeting with leaders of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and Joint Negotiation Council (JNC) at the Governor’s Office, Oke-Mosan, Abeokuta, on Thursday. The meeting focused on addressing concerns over the implementation of the Contributory Pension Scheme (CPS) and other pending labour matters.
The governor announced that his administration would commence the full implementation of the CPS from July 2025, assuring workers that all necessary measures are being put in place to ensure transparency and accountability.
He revealed that the state would adopt a two-phase, 10-year payment plan for outstanding pension contributions. Phase one will cover retirees from July 2, 2025, to July 2030, while phase two will begin in 2030 and run through 2035.
“We have decided that in phase one, we will pay outstanding contributions for those retiring between July 2, 2025, and July 2030. Next year, we will begin phase two, which will cover retirees from July 2, 2030, to July 1, 2035,” Abiodun said.
The governor stated that under the new structure, the current gratuity scheme would be discontinued from July 2, 2025, as all consolidated salaries would revert to the CPS model.
“A lot of work has gone into this. We found that past pension managers were not suitable, which contributed to delays. Going forward, we will ensure PENCOM receives the resources it needs to promptly fulfill its obligations,” he added.
He said all employees would be registered under the CPS after the selection of qualified Pension Fund Administrators (PFAs), and laws backing the implementation of the scheme would be enacted.
On other labour-related matters, Abiodun disclosed that his administration had paid leave allowances inherited up to 2013, with N8 billion outstanding from 2014 to 2022 to be paid in tranches.
He also revealed that N37 billion had been paid as gratuities to local government and state retirees, while N163 billion had been paid in pensions to both categories of workers since 2019.
On promotions, the governor said six promotion exercises had been conducted in the last five years, with payments for 2023 and 2024 scheduled for September and December 2025 respectively.
“This evening, I have decided that we will commence payment for those promoted in 2023 in September 2025, while those promoted in 2024 will be paid in December 2025,” he said.
Abiodun also promised to review the basic salaries of state workers, with a view to aligning them with prevailing standards in the Southwest region.
He commended the labour unions for their cooperation since the inception of his administration in 2019, noting that their support had contributed to the state’s socio-economic development.
In response, the State NLC Chairman, Comrade Hameed Benco, said the decision to embark on a strike stemmed from fears and misinformation surrounding the implementation of the CPS.
Also speaking, the TUC Chairman, Comrade Akeem Lasisi, clarified that the strike was not intended to cripple the state’s economy, but to draw the governor’s attention to workers’ concerns, especially following the July 1, 2025, commencement of the amended 2006 Pension Reform Act.
He urged the government to adjust the basic salaries of workers in line with what is obtainable in other Southwest states.
