The Ogun State labor unions have threatened industrial action over the government’s failure to remit over N40 billion in contributory pensions deducted from workers’ salaries over the past 15 years.
The unions, including the Trade Union Congress (TUC), Nigeria Labour Congress (NLC), and Joint Negotiation Council (JNC), communicated this in a letter to Governor Dapo Abiodun on Tuesday.
The letter, signed by Comrade Akeem Lasisi, Chairman of TUC Ogun State, NLC Chairman Hammed Benco-Ademola, and JNC Chairman Isa Olude, highlighted that despite forming a committee to address this issue in October 2022, Governor Abiodun’s administration has not made the committee’s report public.
They emphasized the urgency as the effective date for the Contributory Pension Scheme, July 1, 2025, approaches, as per the 2013 State Pension Reform Law amended in 2008.
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The unions stated, “We are talking about over N40 billion in unremitted deductions. The government collectively owes over 160 months. Former Governor Gbenga Daniel owed 25 months before leaving office, ex-Governor Amosun paid only 9 months during his eight-year tenure, and Governor Abiodun has not paid a dime since taking office in 2019.”
They also accused the government of failing to remit the 7.5% contributory pensions deducted monthly from each worker’s salary and not paying its counterpart contribution of 7.5%, making a total of 15% due to the Pension Fund Administrators.
The workers expressed their concerns about their future welfare, stating, “We cannot pretend that all is well when our fate is hanging in the balance with no hope of having our welfare taken care of in retirement.”
The letter further reads, “Having thoroughly and objectively assessed the entire Contributory Pension Scheme from its legislation, implementation, and current position, we conclude that we are set for industrial unrest in the State Civil/Public Service.
The State has maintained an unencouraging stance on the scheme with no significant changes. The much-publicized committee report from October 2022 remains unpublished.”
“As July 1, 2025, the effective date for the Contributory Pension Scheme [Ogun State Pension Reform Law, 2008 (amended 2013)], approaches, so does the apprehension regarding the State Government’s true commitment to the workforce’s post-retirement welfare.
The scheme’s poor performance over the last 14 years, compounded by unremitted deductions, poses a significant financial burden.”
The unions urged the government to release the committee’s report and the State Government White Paper to alleviate the mounting tension exacerbated by the current economic hardships.
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