Ogun workers threaten strike over N40bn pension funds not paid

Organized trade unions in Ogun State have issued a stern warning of planned industrial action over the failure of the Ogun State government to pay over N40 billion in contributory pension money deducted from workers’ salaries over the past 15 years.

In a joint letter addressed to Governor Dapo Abiodun, signed by Comrades Akeem Lasisi (State Chairman, TUC), Hammed Benco-Ademola (NLC partner), and Isa Olude (JNC Chairman), the unions expressed deep concern over the state’s handling of the matter.

They highlighted that despite a committee being formed to investigate the matter in October 2022, the government has not yet published the committee’s report.

The unions stressed the urgency of the situation, especially given the imminent effective date of 1 July 2025 for the Contributory Pension Scheme as stipulated in the State Pension Reform Act 2013 (amended 2008). They lamented the lack of concrete progress or assurances from the government regarding the implementation of the scheme.

According to the union, the government has over 160 months of outstanding deductions, while previous administrations have also failed to meet their obligations. They pointed out that former Governor Gbenga Daniel left office with 25 months of outstanding deductions, while Governor Ibikunle Amosun only paid 9 months of his 8-year tenure, and Governor Dapo Abiodun has not paid any of his arrears since assuming office in 2019.

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Workers also criticized the government for not depositing the 7.5% pension contribution deducted monthly from each worker’s salary to the Pension Fund Administrator (PFA), or paying a matching contribution of 7.5%, bringing the total to 15%, as required by law.

“It is clear that our welfare in retirement is at risk due to the government’s mismanagement of our pension funds over the years,” the unions stated in their letter, warning of possible industrial unrest within the Civil Service if the situation remains unresolved.

The letter concluded with a plea for transparency and immediate action from Governor Abiodun, urging the release of the Committee’s report and the State Government’s White Paper on the Contributory Pension Scheme to defuse the rising tensions among workers.

The union stressed that the move was vital to restore confidence and address the financial uncertainty facing Ogun State employees ahead of the looming July 1, 2025 deadline.

Ogun Workers Threaten Strike Over N40 Billion Pension Fund Unpaid First Posted on Latest Nigeria News | Top Stories from Ripples Nigeria.