The organised labour in Ogun State has commenced an indefinite strike over the non-remittance of N82 billion pension deductions spanning 14 years, plunging government offices and public services into uncertainty.
The industrial action, which took effect from midnight, Tuesday, July 15, 2025, was declared by a coalition of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Joint Negotiating Council (JNC) after a statewide congress.
In a joint statement signed by the leadership of the unions, the workers accused successive state administrations of violating the Ogun State Pension Reform Law of 2008, as amended in 2013, which established the Contributory Pension Scheme (CPS).
The CPS mandates both government and employees to contribute 7.5 per cent of the workers’ basic salary monthly, which is to be managed by appointed Pension Fund Administrators (PFAs). However, the labour unions allege that the state government has consistently deducted workers’ contributions without remitting them to the PFAs.
Accessible records, according to the unions, revealed that only 34 months of the expected 204 months (17 years) of deductions from the state and local governments were remitted.
“For 14 years, monthly deductions from workers’ salaries have been consistent, but the remittance of these funds to PFAs has been deliberately neglected,” the statement read. “This constitutes a direct shortchanging of dedicated workers, denying them interest accruals and investment benefits from their pension savings.”
The unions further described the CPS as a “wage-lowering tactic” that has drained workers’ resources, leaving their retirement security in jeopardy.
The labour unions recalled that in 2022, the state government inaugurated the Adekunle Hassan Pension Reform Committee to review the pension crisis. However, the committee’s findings and recommendations have not been made public, and no concrete steps have been taken to address the issue.
“Countless letters and correspondences were written to the state authorities, but none received a single response,” the statement lamented.
Workers had, two weeks earlier, demanded the suspension of the CPS, which was scheduled for full implementation on July 1, 2025, or a return to the old pension scheme. The unions argued that the CPS was “designed to fail” due to lack of transparency and consistent breaches of the law by past administrations.
Breaking down the history of the deductions, the unions alleged that:
Former Governor Gbenga Daniel, who signed the CPS into law in 2008, failed to remit 25 months of workers’ deductions before leaving office in May 2011.
His successor, Senator Ibikunle Amosun, who amended the law in 2013, remitted only nine months of deductions throughout his eight-year tenure.
The current governor, Dapo Abiodun, has allegedly failed to remit any worker deductions into the pension scheme in his six years in office.
This, the unions insist, has worsened the pension deficit, leaving workers uncertain about their future after retirement.
The indefinite strike, which covers both state and local government workers, has disrupted administrative activities across the state. Schools, hospitals, and other public institutions are expected to experience significant operational downtime until the government addresses the workers’ demands.
Labour leaders have vowed not to resume work until concrete action is taken to clear the pension backlog, remit all outstanding deductions, and reform the CPS to protect workers’ retirement benefits.
While the state government is yet to issue an official response, analysts warn that the strike could further strain Ogun’s public services and economic activities if prolonged. Public affairs experts have urged Governor Abiodun’s administration to initiate dialogue with labour leaders to avert a total collapse of public institutions.
The NLC and TUC have also insisted that they are open to negotiations, provided the government demonstrates “genuine commitment” to addressing the 14-year pension crisis.