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Ogun Workers reject Pension Scheme over N82bn unremitted deductions

By: Lauretta Fagbohun, Abeokuta.

Organised labour unions in Ogun State have rejected the proposed implementation of the Contributory Pension Scheme (CPS), demanding its immediate suspension over the alleged non-remittance of over N82 billion in pension deductions spanning 17 years.

At a press conference held at the Nigeria Labour Congress (NLC) Secretariat in Abeokuta, the unions—comprising the NLC, Trade Union Congress (TUC), and Joint Negotiating Council (JNC)—issued a 72-hour ultimatum to the state government to halt the scheme, which is scheduled to take effect from July 1, 2025.

The workers cited the government’s failure to remit accumulated pension deductions to Pension Fund Administrators (PFAs) since 2008 as a major point of contention. They called on the government to either revert to the previous pension structure or delay the CPS rollout until all financial and administrative concerns are addressed.

Present at the briefing were the Ogun State NLC Chairman, Comrade Hameed-Benco Ademola, TUC Chairman Akeem Lasisi, and JNC Chairman Isa Olude, alongside other labour leaders.

The unions revealed that the pension scheme, originally signed into law in 2008 by former Governor Gbenga Daniel, was flawed from inception, as Daniel failed to remit 25 months of workers’ deductions before leaving office in 2011. His successor, Senator Ibikunle Amosun, who amended the law in 2013 and set 2025 as the start date for the scheme, reportedly remitted only nine months of contributions throughout his eight-year tenure.

They further accused the incumbent Governor Dapo Abiodun of failing to remit any deductions into the scheme during his six years in office.

Despite repeated letters and communications to the government, the unions said their concerns have been met with silence.

Speaking on behalf of the organised labour, Comrade Hameed-Benco stated:

“Arising from meetings held with all affiliates and organs of the Organised Labour on the CPS and its full implementation in the state commencing on July 1, 2025, we considered it necessary to inform the public of our rejection of full implementation and demand a postponement to a later date when all administrative and financial necessities are in place.”

He pointed to the inconsistencies in the implementation of the 2008 Pension Act, as amended in 2013, and lamented the absence of critical institutional structures such as the State Bureau of Contributory Pension, a functional Contributory Pension Board, and a comprehensive database of contributors.

The unions are therefore demanding the suspension of the Ogun State Pension Reform Law (OGPRL) and have called for an urgent dialogue with the government.

When asked about the next steps should the government fail to respond within the stipulated period, TUC Chairman Akeem Lasisi said consultations with workers would determine further actions.

“What is certain is that Ogun State workers are angry, they are not happy, and they are feeling frustrated. The atmosphere is already tense,” he added.

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