Ogun State Labour Unions Threaten Strike Over Governor Abiodun’s Failure To Remit N40billion Pensions

The organised labour unions in Ogun State have issued a stern warning of impending industrial action due to the government’s failure to remit over N40 billion in contributory pensions deducted from workers’ salaries over the past 15 years. 

The Trade Union Congress (TUC), Nigeria Labour Congress (NLC), and Joint Negotiation Council (JNC) conveyed their dissatisfaction in a letter addressed to Governor Dapo Abiodun.

The letter, signed by Comrade Akeem Lasisi (TUC), Hammed Benco-Ademola (NLC), and Isa Olude (JNC), criticised the state government for its lack of transparency regarding the committee set up in October 2022 to address the issue.

Despite commitments, the report of this committee remains undisclosed.

Expressing urgency, the unions highlighted less than a year remains until July 1, 2025, the effective date for the Contributory Pension Scheme under the 2013 State Pension Reform Law (amended in 2008). They emphasized a perceived lack of government sincerity in implementing this crucial pension reform.

According to the unions, the accumulated unremitted deductions exceed N40 billion, covering more than 160 months. They pointed out that former Governor Gbenga Daniel left office with 25 months of outstanding payments, while ex-Governor Amosun remitted only 9 months during his eight-year tenure. Governor Abiodun, in office since 2019, has allegedly not made any payments.

The unions accused the government of neglecting to remit 7.5% of contributory pensions deducted monthly from workers’ salaries to Pension Fund Administrators (PFA). Additionally, the state has reportedly failed to contribute its counterpart 7.5%, totaling 15%, exacerbating financial uncertainty for retirees.

Workers expressed grave concerns over their future welfare, criticizing the government’s handling of their pension funds. They stated that without immediate intervention, the prospect of financial security in retirement remains bleak.

The letter from the unions detailed a comprehensive assessment of the Contributory Pension Scheme’s legislative journey, implementation, and current challenges. It underscored growing discontent among civil and public service employees, warning of potential industrial unrest.

The unions reiterated their disappointment that the committee’s findings, established over a year ago, have not been made public. They urged Governor Abiodun to prioritize transparency by releasing the committee’s report and the corresponding State Government White Paper.

With the deadline for full scheme implementation approaching, the unions stressed the critical need for clarity on the government’s commitment to the welfare of its workforce post-retirement. They highlighted the significant financial burden posed by years of unremitted deductions.

Recognising the financial constraints faced by the state, the unions suggested postponing the scheme’s implementation until economic conditions improve. They emphasized the importance of aligning financial capabilities with the scheme’s demands to avoid further unrest.

The unions appealed for immediate action to address the longstanding grievances and restore confidence among workers. They emphasized that failure to act swiftly could lead to heightened tensions and broader industrial disruptions across Ogun State.