OGUN TO IMPLEMENT CONTRIBUTORY PENSION SCHEME FROM JULY, SAYS GOVERNOR ABIODUN

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By Aishat Momoh. O.

Governor Dapo Abiodun of Ogun State has announced that his administration will begin full implementation of the Contributory Pension Scheme (CPS) for state workers starting July 2025.

Speaking during a meeting with leaders of the Organised Labour at his office in Oke-Mosan, Abeokuta, the governor said his government would immediately commence payment for retirees from July 2, 2025, under the new scheme.

Governor Abiodun outlined a two-phase payment structure spanning a decade, with the first phase covering retirees from 2025 to 2030, while the second phase would cater to those retiring between 2030 and 2035. He added that the plan was designed to ensure prompt pension payments well beyond his tenure and that of his successor.

As part of the new framework, he disclosed that the current gratuity system would be discontinued from July 2, 2025, and all workers on consolidated salary would fully transition to the CPS. He also pledged that necessary laws would be enacted to support the implementation.

The governor noted that only qualified Pension Fund Administrators would be engaged and that registration of all employees under the CPS would begin immediately.

On other labour-related matters, Abiodun said his administration had cleared inherited leave bonuses up to 2013 and assured that the outstanding N8 billion for 2014 to 2022 would be paid in tranches. He further stated that N37 billion had been paid as gratuities to retirees, while N163 billion had been disbursed in pensions to state and local government workers since 2019.

He appealed to labour unions to seek dialogue in addressing workers’ welfare concerns rather than resorting to industrial action, thanking them for their continued support.

Responding, the Ogun State Chairman of the Nigeria Labour Congress (NLC), Hameed Benco, said the recent strike was triggered by fears and uncertainties surrounding the pension reforms. The State Chairman of the Trade Union Congress (TUC), Akeem Lasisi, added that the strike was intended to draw attention to workers’ concerns, especially with the July 1, 2025 commencement of the amended 2006 Pension Reform Act.

Lasisi also urged the state government to adjust workers’ basic salaries to align with those of their counterparts in other southwestern states.