The organised labour groups in Ogun State — including the Nigeria Labour Congress, Trade Union Congress, and Joint Negotiating Council — on Monday instructed all state employees to embark on an indefinite strike.
This move follows the state’s failure to remit N82 billion in contributory pension deductions over a span of 14 years.
This directive was disclosed in a statement signed by leaders of the NLC, TUC, and JNC, and shared with The PUNCH on Monday.
The decision for industrial action was reportedly made during a statewide congress held the same day, where workers voted to indefinitely stop work in protest of the non-functional Ogun State Pension Reform Law 2008 and its 2013 amendment.
The 2013 amendment to the Pension Law established the Contributory Pension Scheme, which mandates that both employers and employees contribute a fixed monthly sum of 7.5 percent of the worker’s basic salary into a fund managed by licensed pension fund administrators.
According to the labour unions, in the 17 years since the law was enacted, there has been a consistent failure to implement it properly, often violating the provisions of the law.
The statement noted that “Accessible records on it established the incontrovertible fact that it has rather been a drain of resources for the workers, and curiously, a wage lowering tactic for successive governments of the state.”
It added that “Only 34 months (that is, three years less than two months) of the expected 204 months (17 years) of the deductions from both sides, i.e. the state/local governments were remitted to the PFAs.”
It also stated, “In the last 14 years, and still counting, monthly deductions only from workers’ salaries have been diligently consistent without remittance to their PFAs.”
“The statue-prescribed investments of the funds, the interests it could have yielded, amongst other associated benefits are all in limbo.”
“It simply translated to the apparent shortchanging of the entirety of active and dedicated workers of the state over the years.”
The unions mentioned the Adekunle Hassan Pension Reform Committee that was formed in 2022, stating that its report and recommendations were never made public.
They noted that no definitive steps had been taken to resolve the situation. Despite sending numerous letters to the authorities, the state government never responded.
Suffice that workers unanimously demanded for outright cancellation of the shortchanging scheme which, according to its amended version, comes into full effect on July 1, 2025.
The statement continued, “In clear terms, the indefinite suspension of services across the state and local governments takes full effect from midnight, Tuesday 15th July 2025.”
Earlier, about two weeks ago, the labour unions urged the state government to either delay the implementation of the CPS, initially scheduled for July 1, or revert to the old pension system.
They pointed out that the pension law, signed by former Governor Gbenga Daniel in 2008, was flawed from inception, as the administration failed to remit 25 months’ worth of deductions before exiting office in May 2011.
They added that Daniel’s successor, Senator Ibikunle Amosun, amended the law in 2013 with a plan to fully implement the CPS in July 2025, but only remitted nine months’ deductions throughout his eight-year tenure.
According to the labour leaders, Governor Dapo Abiodun, in his six years in office, has not remitted any contributions from workers into the scheme.
They expressed frustration that despite numerous letters and communications, the government has remained silent on the issue.