After intense negotiations, Ogun State’s organized labour has firmly rejected Governor Dapo Abiodun’s recent offer aimed at resolving the ongoing indefinite strike over unpaid contributory pension dues. The strike, declared over the state’s failure to remit N82 billion in pension contributions spanning 14 years, remains unresolved.
okay.ng reports that the dispute escalated following a seven-hour emergency meeting held on Friday in Abeokuta, where 25 union affiliates convened to evaluate the government’s proposals. The meeting reviewed several critical issues including the contributory pension scheme (CPS), new minimum wage with consequential adjustments, arrears of leave allowances over eight years, pension adjustments, and delayed staff promotions for 2023 and 2024.
According to the union communique, “Council-in-session at the emergency meeting that spanned seven hours, 9am to 4pm, discussed extensively on each of the items outlined above with in-depth evaluation of the offer(s) of the Ogun State Government on all.” However, they expressed dissatisfaction with the government’s stance on the CPS, emphasizing, “the initial position of the Congress subsists and the declared trade dispute… stands.”
In response, Governor Abiodun, through his Chief Press Secretary Lekan Adeniran, highlighted his administration’s commitment to immediate payment of pension benefits for retirees from July 2, 2025. The governor shared a phased 10-year payment plan beginning in 2025 and stretching through 2035, covering both his remaining tenure and that of his successor.
He explained, “We will pay outstanding contributions for retirees who have retired from July 2, 2025, to July 2030… Next year, we will make the second payment… from July 2, 2030, to July 1, 2035.” The governor also announced the discontinuation of the gratuity scheme in favor of the CPS from July 2, 2025 onward and pledged to pass requisite laws backing these changes.
The strike roots trace back to the 2013 amendment of the pension law, which established the CPS, mandating equal employer and employee monthly contributions totaling 15% of salaries. Labour unions accuse the government of consistently deducting workers’ pension funds without remitting them, calling the system “a drain of resources” and a “wage-lowering tactic.”
The workers insist the government either transparently address all irregularities or suspend CPS implementation, reverting to the previous pension arrangements.
