By: Lauretta Fagbohun, Abeokuta.
Ogun State Governor, Prince Dapo Abiodun, has announced that the full implementation of the Contributory Pension Scheme (CPS) for state workers will commence this July 2025, pledging immediate compliance for new retirees and outlining a structured payment plan spanning the next decade.
Governor Abiodun made the commitment during a crucial meeting with the leadership of organized labour at his office in Oke-Mosan, Abeokuta, aimed at resolving issues that triggered the ongoing indefinite strike by state workers.
Addressing the concerns raised by labour over delays and lack of clarity in the pension transition process, the governor declared that workers retiring from July 2, 2025, will begin receiving their entitlements under the CPS without delay.
According to him, the scheme will unfold in two phases, Phase One (2025–2030) Immediate payments for workers retiring within this period.
Phase Two (2030–2035) To commence in 2026 and cover future retirees, including those beyond his administration.
“There will be no gratuity payments from July 2, 2025, as the CPS will replace that system. Consolidated salary structures will be discontinued in favour of the scheme. We are putting the right structures and qualified administrators in place to ensure this works,” Abiodun stated.
He emphasized that relevant legislation would be passed to provide a solid legal framework for the implementation and enforcement of the pension reforms, while also ensuring that PENCOM is adequately resourced to meet retirees’ needs promptly.
On outstanding issues, the governor revealed that, N8 billion in unpaid leave bonuses (2014–2022) will be paid in tranches. N37 billion has already been disbursed as gratuities to retirees in both state and local governments.N163 billion has gone into pension payments since 2019.
He also announced that salary arrears from promotion exercises will be cleared, 2023 promotions will be paid in September 2025, 2024 promotions in December 2025
Abiodun further assured the labour leaders that the basic salaries of workers would be reviewed to reflect fairness and parity with their counterparts across the southwest.
He urged labour unions to adopt dialogue as a preferred path to resolving industrial issues, appreciating their cooperation and resilience in supporting the state’s development since 2019.
NLC State Chairman, Comrade Hameed Benco, explained that the strike action stemmed from anxiety, misinformation, and fear among workers about the implementation of the new pension system.
TUC State Chairman, Comrade Akeem Lasisi, clarified that the industrial action was not intended to cripple the state but to draw attention to unresolved concerns, especially in light of the amended 2006 Pension Reform Act which took effect on July 1, 2025.
He urged the state government to review and upgrade the basic salary structure of workers in line with prevailing standards across southwestern Nigeria.
