Ogun workers threaten strike over unremitted N40bn pension funds

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

In a joint letter addressed to Governor Dapo Abiodun, signed by Comrade Akeem Lasisi (State Chairman, TUC), Hammed Benco-Ademola (NLC counterpart), and Isa Olude (JNC Chairman), the unions expressed deep concern over the state’s handling of the issue.

They highlighted that despite the establishment of a committee to investigate the matter in October 2022, the government has not made the committee’s report public.

The unions emphasized the urgency of the situation, particularly in light of the impending effective date of July 1, 2025, for the Contributory Pension Scheme as stipulated by the 2013 State Pension Reform Law (amended 2008). They lamented the lack of tangible progress or assurances from the government regarding the implementation of this scheme.

According to the unions, the government owes more than 160 months of unremitted deductions, with past administrations also failing to fulfill their obligations. They pointed out that former Governor Gbenga Daniel left office with 25 months’ worth of unpaid deductions, while Governor Ibikunle Amosun only paid for 9 out of his 8-year tenure, and Governor Dapo Abiodun has yet to remit any amount since assuming office in 2019.

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The workers further criticized the government for not remitting the 7.5% contributory pensions deducted monthly from each worker’s salary to Pension Fund Administrators (PFA), nor paying its counterpart contribution of 7.5%, totaling 15%, as required by law.

“It is evident that our welfare in retirement is at risk due to the government’s mishandling of our pension funds over the years,” the unions stated in their letter, warning of imminent industrial unrest within the State Civil/Public Service if the situation remains unresolved

The letter concluded with a plea for transparency and immediate action from Governor Abiodun, urging the release of the Committee’s report and the State Government White Paper on the Contributory Pension Scheme to alleviate mounting tensions among workers.

The unions stressed that such steps were crucial to restoring confidence and addressing the financial uncertainties faced by Ogun State employees ahead of the looming July 1, 2025 deadline.