Ogun State Begins Full Implementation of Contributory Pension Scheme in July 2025 – Gov Abiodun Assures Labour Unions

The Ogun State Government, under the leadership of Prince Dapo Abiodun, has confirmed that the comprehensive implementation of the Contributory Pension Scheme (CPS) for state employees will officially commence this July 2025. This commitment was made clear during a crucial dialogue between the governor and organized labour unions, aimed at resolving the pressing concerns around CPS and other outstanding matters that triggered the ongoing industrial action by the state workforce.

Governor Abiodun’s Strategy for Pension Payments and Workers’ Retirement Benefits

During the strategic meeting with labour leaders held at his office in Oke-Mosan, Abeokuta, Governor Abiodun reiterated his administration’s readiness to enforce the full Contributory Pension Scheme, ensuring prompt and structured pension payments for employees retiring from July 2, 2025, onwards.

The governor outlined a well-structured 10-year pension payment plan, divided into two distinct phases:

• Phase One: Spanning from 2025 to 2030, this phase will cater to retirees exiting service between July 2, 2025, and July 2030.
• Phase Two: Commencing in 2030, this phase will extend up to 2035, providing for retirees who leave the state’s service between July 2, 2030, and July 1, 2035.

With this roadmap, the government ensures that pension obligations covering the remaining two years of Abiodun’s tenure and an additional eight years under future administrations are addressed.

He emphasized:

“For phase one, all retirees from July 2, 2025, to July 2030 will receive their outstanding contributions immediately. Phase two will begin next year, covering those retiring from July 2, 2030, to July 1, 2035. These payments will go beyond my tenure, ensuring retirees get their entitlements even during and after the next administration.”

End of Gratuity Scheme and Full Transition to CPS

Governor Abiodun announced that effective July 2, 2025, the gratuity payment scheme will be phased out, transitioning all employees to the CPS. Consequently, Consolidated Salaries will be fully aligned with the Contributory Pension Scheme, ensuring sustainability and transparency in pension administration.

The governor candidly addressed past administrative inefficiencies, stating:

“We discovered that the previous pension managers lacked the expertise and proper qualifications, which led to unnecessary delays. To correct this, we’ll strengthen PENCOM with adequate resources to fulfil obligations to retirees without delay. Relevant laws will also be passed to support this policy shift.”

Immediate Staff Enrollment and Historical Debt Commitments

The government will initiate the immediate enrollment and registration of all state employees under the CPS, following the selection of appropriate Pension Fund Administrators (PFAs).

Governor Abiodun highlighted his administration’s achievements in clearing backlogs:

• Payment of inherited leave allowances up to 2013.
• Outstanding leave allowances from 2014 to 2022 amounting to ₦8 billion, to be settled in tranches.
• Payment of ₦37 billion in gratuities to state and local government retirees.
• Total pensions paid to both local and state retirees since 2019 stand at ₦163 billion.

Staff Promotions and Future Salary Adjustments

Over the last five years, six promotion exercises have been conducted. The governor pledged that:

• 2023 promoted staff will receive their payments starting September 2025.
• 2024 promotions will be honoured by December 2025.

Abiodun also assured that the government will review the basic salaries of workers, with the intention to adjust wages to align with other states in the Southwest.

Governor’s Appeal for Industrial Harmony

The governor urged labour unions to adopt peaceful dialogue rather than strikes when addressing workers’ welfare issues. He commended their support since 2019, which has facilitated notable socio-economic development in Ogun State.

Labour’s Response to Government’s Position

Responding to the governor’s presentation, Comrade Hameed Benco, Chairman of the Nigeria Labour Congress (NLC) in Ogun State, clarified that the workers embarked on the strike due to prevailing uncertainties and speculations regarding the CPS implementation.

Similarly, Comrade Akeem Lasisi, State Chairman of the Trade Union Congress (TUC), stressed that the labour’s industrial action was not intended to damage the state’s economy but to draw the government’s attention, especially with the amended 2006 Pension Reform Act taking effect on July 1, 2025.

Lasisi also appealed to the state government to revise workers’ basic salaries to ensure parity with their counterparts in other Southwest states of Nigeria.