Ogun State, Nigeria – On Tuesday, organized labour unions in Ogun State, including the Trade Union Congress (TUC), Nigeria Labour Congress (NLC), and Joint Negotiation Council (JNC), threatened industrial action over the state government’s failure to remit over N40 billion in contributory pensions deducted from workers’ salaries over the past 15 years.
In a letter addressed to Governor Dapo Abiodun and shared with our correspondent, union leaders Comrade Akeem Lasisi (TUC Chairman), Hammed Benco-Ademola (NLC Chairman), and Isa Olude (JNC Chairman) expressed their frustration. They stated that despite the establishment of a committee in October 2022 to address this issue, the state government has not made the committee’s report public.
The unions highlighted the urgency of the situation, noting that less than a year remains until the July 1, 2025, effective date for the Contributory Pension Scheme under the 2013 State Pension Reform Law, amended in 2008. They argued that there is no visible commitment from the government toward implementing this scheme.
“We are talking of over N40 billion unremitted deductions. The government altogether owed over 160 months. Former Gov Gbenga Daniel owed 25 months before he left office. Ex-Gov Amosun paid just only 9 months out of his eight-year tenure, while Gov. Abiodun has not paid a dime since he came to office in 2019,” the unions stated.
The unions accused the government of failing to remit the 7.5% contributory pensions deducted monthly from each worker’s salary to the Pension Fund Administrators (PFAs) for over 15 years. Additionally, the government has not paid its counterpart contribution of 7.5%, making a total of 15% due to the PFAs.
The workers expressed their dissatisfaction, stating that their future welfare in retirement is uncertain due to the government’s handling of their pension funds.
The unions’ letter reads, “Having thoroughly and objectively assessed the entire Contributory Pension Scheme routes from its legislation, implementation vis-a-vis its current position, one cannot but hold the conclusion that we are fully set for industrial unrest in the State Civil/Public Service. To the best of our knowledge, the State has maintained its unencouraging showing on the scheme with a rather disturbing trend that nothing has changed.”
The unions called for the immediate release of the committee’s report and the state government’s white paper on the Contributory Pension Scheme to ease the growing tension among state employees. They stressed that with the effective date for the scheme approaching, employees are anxious about their post-retirement welfare.
The letter concluded, “Immediate release of the Report of the Committee on the Contributory Pension Scheme and the release of the State Government White Paper on it would assist in dousing the tension which, unfortunately, is compounded by the grinding economic pains ravaging our homes.”