Tensions have escalated in Ogun State as organised labour rejected the planned implementation of the Contributory Pension Scheme (CPS) over the state government’s failure to remit a staggering ₦82 billion in pension deductions to workers’ accounts for nearly two decades.
The scheme, which was scheduled to take off on July 1, 2025, has sparked outrage among public servants and union leaders, who have described the government’s silence and default as a gross betrayal of trust and a violation of the 2008 Pension Reform Act (as amended in 2013).
At a press briefing held in Abeokuta, the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Joint Negotiating Council (JNC) unanimously demanded that the government suspend the scheme within 72 hours or face industrial action.
According to the unions, the state government has defaulted on the remittance of statutory deductions for 17 years, amounting to an unpaid liability of ₦82 billion. These funds, meant for workers’ retirement savings, were never credited to Pension Fund Administrators (PFAs), leaving thousands of workers’ future uncertain.
NLC Chairman, Hammed-Benco Ademola, voiced the collective frustration of the workforce, saying:
“We cannot allow the government to implement a scheme that has already failed before takeoff. Without addressing the backlog and putting in place the necessary institutional frameworks, this is nothing but a mockery of workers’ rights.”
The labour unions also flagged the absence of critical administrative structures, including:
A State Bureau of Contributory Pension
A Contributory Pension Board
A functional register and database of contributors
An effective monitoring and enforcement system
Without these, the unions argue, the CPS rollout is “doomed to fail and expose workers to further financial insecurity.”
TUC Chairman, Akeem Lasisi, emphasized that the unions are not against pension reforms but demand accountability and structural readiness:
“We support pension reforms. But there must be transparency, systems, and sincerity. What we currently see is a government attempting to force implementation without addressing 17 years of non-compliance. If this is not halted within 72 hours, we will take necessary actions in consultation with our members.”
Labour leaders urged Governor Dapo Abiodun’s administration to suspend the implementation of the Ogun State Pension Reform Law, initiate dialogue with all stakeholders, and provide a clear roadmap for debt repayment and structural reforms.
They also demanded an audit of all pension deductions, full disclosure of remittance records, and legislative amendments to strengthen accountability in the state’s pension system.
The mood among workers across the state has turned tense, with many expressing frustration over the persistent neglect of their retirement welfare. Several civil servants who spoke on condition of anonymity said the CPS would only be acceptable once the government clears its debt and proves its commitment to transparency.
“You can’t owe us ₦82bn and then ask us to trust you with our future savings. That’s unacceptable,” said one senior staff member in the education sector.
The Ogun State pension crisis reflects a broader pattern of non-compliance among several sub-national governments in Nigeria. The 2008 Pension Reform Act mandates monthly deductions and remittances to workers’ retirement savings accounts, but enforcement has remained weak at the state level.
Despite previous promises to clear arrears, the Ogun State government has repeatedly failed to meet deadlines or engage workers in meaningful dialogue. Critics argue that without federal intervention or legislative sanctions, state-level pension crises will persist.
With the 72-hour ultimatum ticking, all eyes are on Governor Abiodun’s administration to respond decisively. Labour unions have signalled their readiness for a statewide industrial action if their demands are ignored.
For Ogun’s overburdened civil servants, the question remains: Can they trust a system that has failed them for nearly two decades?