Governor Dapo Abiodun of Ogun State has announced that his administration will begin the full implementation of the Contributory Pension Scheme (CPS) for state workers from July 2025.
He gave the assurance during a meeting with leaders of Organised Labour at his office in Oke-Mosan, Abeokuta. The meeting aimed to resolve outstanding concerns surrounding the CPS and other issues that triggered the ongoing workers’ strike in the state.
Abiodun confirmed that the government would begin immediate pension payments under the CPS to retirees from 2 July 2025. He outlined a two-phase payment strategy spanning a decade. The first phase will cover retirees from July 2025 to July 2030, while the second phase, beginning next year, will address payments from July 2030 to July 2035.
He explained, “We will pay the outstanding contributions in the first phase covering July 2, 2025, to July 2030. The second phase begins next year and will cater for those retiring from July 2, 2030, to July 1, 2035. This plan covers the last two years of my tenure and the first eight years of my successor’s administration.”
From July 2, 2025, the government will discontinue the gratuity scheme and revert fully to the CPS for all employees on consolidated salaries.
Abiodun criticised past pension administrators, stating that many lacked the required expertise, which had slowed the process. He assured that proper resources would be provided to the National Pension Commission (PENCOM) to fulfil its obligations promptly and that the government would enact the necessary legislation to support the scheme.
He added that all workers would be registered under the CPS following the selection of suitable Pension Fund Administrators.
The governor noted progress on other fronts, saying that leave allowances inherited up to 2013 had been settled, while the N8 billion owed from 2014 to 2022 would be paid in instalments. He said his administration had paid N37 billion in gratuities to state and local government retirees, and N163 billion in pensions between 2019 and now.
Abiodun appealed to labour unions to adopt peaceful and constructive engagement with the government instead of industrial action. He thanked them for their support since 2019, which he said had contributed to the state’s development.
Responding, the State Chairman of the Nigeria Labour Congress (NLC), Hameed Benco, said the strike was prompted by speculation and uncertainty surrounding the pension scheme, which had caused anxiety among workers.
The State Chairman of the Trade Union Congress (TUC), Akeem Lasisi, explained that the strike was not intended to disrupt the state’s economy but to draw the governor’s attention to the concerns of workers. He referenced the recent amendment to the 2006 Pension Reform Act, which takes effect on 1 July 2025, as a key concern.
Lasisi also urged the state government to revise basic salaries to align with what is obtainable in other southwest states.