Ogun State workers may soon return to work as Governor Dapo Abiodun on Thursday reached a landmark agreement with the leadership of organized labour, following days of strike action over the implementation of the Contributory Pension Scheme (CPS) and other labour-related issues.
At a crucial meeting held at the Governor’s Office, Oke-Mosan, Abeokuta, Governor Abiodun announced that the full implementation of the CPS would commence in July 2025, marking a significant step in resolving pension-related concerns that have lingered for years.
The governor assured labour leaders that effective July 2, 2025, all retiring workers in the state would receive their entitlements under the Contributory Pension Scheme without delay. He further outlined a two-phase, 10-year payment plan, covering retirees from 2025 to 2035, meant to clear backlogs and ensure smooth future disbursements.
“We have decided that in Phase One, we will clear the outstanding contributions of retirees from July 2, 2025, to July 2030. Then in Phase Two, beginning next year, we will cater for those retiring from July 2, 2030, to July 1, 2035. This shows our commitment to a sustainable pension system, even beyond my tenure,” Abiodun explained.
As part of the reform, the governor declared that the traditional gratuity scheme will be discontinued from July 2, 2025, as all salaries will henceforth align with the Contributory Pension structure.
He also revealed that his administration has paid over N37 billion in gratuities to retirees and N163 billion in pensions to local and state workers since 2019. Additionally, six promotion exercises have been conducted in five years, with payments for 2023 and 2024 promotions scheduled for September and December 2025 respectively.
On outstanding leave bonuses, Governor Abiodun acknowledged that while inherited arrears have been cleared up to 2013, the N8 billion balance from 2014 to 2022 will be paid in tranches.
The governor emphasized the need for a constructive partnership with labour, urging union leaders to adopt dialogue and avoid industrial action as the first response to disputes. “Let us continue to find peaceful ways to resolve our issues. Strikes should be the last resort,” he urged.
In response, Comrade Hameed Benco, Chairman of the Nigeria Labour Congress (NLC) in Ogun State, expressed optimism over the governor’s assurances. He clarified that the strike was triggered by widespread fears and misinformation surrounding the pension reform.
Similarly, Comrade Akeem Lasisi of the Trade Union Congress (TUC) said the strike was intended to draw the governor’s attention to worker grievances and not to paralyze state operations. He appealed to the state government to also review workers’ basic salaries in line with current economic realities and in comparison with other Southwest states.
With the governor’s commitments and labour’s positive reception, the suspension of the ongoing strike appears imminent, offering hope for industrial harmony and sustained development in Ogun State.
