On Tuesday, labor unions in Ogun State threatened to start a strike because the government has not paid over N40 billion in pensions taken from workers’ salaries over the last 15 years. The unions involved are the Trade Union Congress (TUC), the Nigeria Labour Congress (NLC), and the Joint Negotiation Council (NJC). They wrote a letter to Governor Dapo Abiodun expressing their concerns.
The letter was signed by Comrade Akeem Lasisi, the Chairman of TUC in Ogun State, Hammed Benco-Ademola, the NLC Chairman, and Isa Olude, the JNC Chairman. In their letter, the unions pointed out that even though a committee was set up in October 2022 to address this issue, the government has not made the committee’s report public.
The unions emphasized that with less than a year left until July 1, 2025, the start date for the Contributory Pension Scheme as per the 2013 State Pension Reform Law (amended in 2008), there is no evidence that the government is serious about implementing the scheme.
They explained that more than N40 billion in deducted pensions have not been paid. The government owes over 160 months of pension payments. Former Governor Gbenga Daniel left 25 months unpaid, former Governor Amosun only paid for 9 months during his 8-year tenure, and Governor Abiodun has not paid anything since taking office in 2019.
The unions said the government has not transferred 7.5% of the workers’ salaries, deducted monthly for pensions, to the Pension Fund Administrators (PFA). Additionally, the government has not paid its matching 7.5% contribution, totaling 15% of each worker’s salary, to the PFA.
The workers are worried about their future since the government has mishandled their pension funds for many years. The unions stated, “We are dealing with over N40 billion in unremitted deductions, and the government owes over 160 months of pensions. Former Governor Daniel owed 25 months, Governor Amosun paid only 9 months in 8 years, and Governor Abiodun has not paid at all since 2019.”
The letter further read: “We have carefully reviewed the Contributory Pension Scheme from its legislation to its current state. We believe we are heading towards industrial unrest in the State Civil/Public Service. Despite the committee set up in October 2022, its report has not been released. With the effective date of the scheme approaching on July 1, 2025, the government’s lack of action raises concerns about its commitment to the workforce’s welfare post-retirement.
The scheme has not improved, and the large unpaid deductions over the past fourteen years pose a significant challenge. As committee members, we have seen the true statistics of the scheme. It might be better to postpone the scheme until the state’s finances can support it. The employees are eager to know their fate before July 1, 2025.
