Ogun Contributory Pension Scheme Commences this Month
Ogun State Governor, Prince Dapo Abiodun, has assured workers in the state that the long-awaited Contributory Pension Scheme (CPS) will officially take effect from July 2025, marking a significant shift in the state’s pension administration.
The governor gave the assurance during a crucial meeting with organized labour leaders at the Governor’s Office in Oke-Mosan, Abeokuta, held to resolve ongoing labour unrest and address mounting concerns over pension reforms and other outstanding workers’ entitlements.
According to Governor Abiodun, the phased implementation of the CPS will begin with retirees from July 2025, while legacy gratuity payments will be gradually phased out.
“We have decided that in Phase One, we will pay outstanding contributions for retirees between July 2025 and July 2030. These payments will commence immediately. Phase Two, covering July 2030 to July 2035, will begin next year,” the governor stated.
He emphasized that while his administration will be responsible for the first two years of implementation, the remaining years would be inherited by his successor, ensuring the scheme’s continuity and sustainability.
In line with the shift, Abiodun announced that the traditional gratuity scheme will end as of July 2025, with all consolidated salaries reverting to the contributory structure mandated by the Pension Reform Act. He explained that structural lapses and unqualified personnel had hampered progress in the past, but pledged that the state’s Pension Commission (PENCOM) would now be properly equipped to fulfill its responsibilities.
“All employees will be registered under the CPS once we finalize arrangements with credible Pension Fund Administrators (PFAs),” he added, hinting that legislative backing would soon follow to solidify the new pension framework.
On broader labour issues, the governor disclosed that his administration had settled inherited leave bonuses up to 2013. He further pledged to clear the remaining ₦8 billion leave allowance arrears from 2014 to 2022 in tranches.
Providing further financial updates, Governor Abiodun said ₦37 billion had already been paid as gratuities to retirees across state and local governments, while pensions totaling ₦163 billion had been disbursed since 2019.
He also announced that workers’ promotion benefits would be addressed, with payments for 2023 promotions starting in September 2025, and those for 2024 beginning in December 2025.
On salary adjustments, Abiodun pledged a review of the current salary structure to better align with economic realities and match standards in other Southwest states. He appealed to labour unions to sustain constructive engagement with the government rather than resorting to industrial actions.
“I appreciate the support you have shown this administration since 2019, which has contributed to the socio-economic progress of our state,” he said.
Responding, the Chairman of the Nigeria Labour Congress (NLC) in Ogun, Comrade Hameed Benco, said the strike action was triggered by confusion and misinformation surrounding the CPS. He acknowledged the government’s efforts to address the situation and expressed hope that continued dialogue would yield lasting solutions.
Also speaking, the State Chairman of the Trade Union Congress (TUC), Comrade Akeem Lasisi, clarified that the strike was not intended to destabilize the state’s economy but to draw attention to the workers’ legitimate concerns, especially in light of the amended 2006 Pension Reform Act which came into effect on July 1, 2025.
Lasisi called on the government to accelerate its review of basic salaries to reflect regional parity, especially with counterparts in other parts of the Southwest.
The meeting ended on a conciliatory note, with both parties agreeing to maintain open lines of communication in the interest of industrial harmony and improved welfare for Ogun State workers.
