By Rosheedat Akinkunlr, JKNewsMedia Reporter
THE CONTRIBUTORY Pension Scheme (CPS) for workers in Ogun State will take full effect from July 2025, according to a new directive issued by Governor Dapo Abiodun following negotiations with organised labour over ongoing industrial action.
The governor unveiled the implementation plan during a meeting at the Governor’s Office, Oke-Mosan, Abeokuta, where he pledged that all workers retiring on or after 2 July 2025 would receive immediate CPS-related benefits.
He outlined a 10-year phased payment plan, split into two parts, to address retirement contributions from 2025 through 2035.
During the first phase (2025–2030), the government will pay outstanding contributions for retirees exiting service between July 2025 and July 2030.
The second phase (2030–2035) will cater to those retiring thereafter, extending beyond Governor Abiodun’s tenure.
The administration will also end the current gratuity scheme effective 2 July 2025. Moving forward, consolidated salaries will fall under the CPS structure, and the state will register employees under selected Pension Fund Administrators.
Abiodun linked past pension delays to mismanagement by unqualified personnel and assured that proper resourcing of the National Pension Commission (PENCOM) would enable prompt payment of benefits.
On leave allowances, the governor said payments had been made up to 2013, and that the N8 billion backlog from 2014 to 2022 would be cleared in batches.
He disclosed that since 2019, over ₦37 billion has been paid in gratuities to both state and local government retirees, in addition to continuous pension settlements.
The administration said it has carried out six promotion exercises in the last five years, with financial benefits for the 2023 and 2024 batches scheduled for release in September and December 2025, respectively.
A review of workers’ basic salaries is also under consideration, Abiodun confirmed.
He urged labour unions to maintain open dialogue with the government rather than resorting to strikes, expressing appreciation for their support since 2019, which he credited with aiding Ogun State’s socio-economic growth.
Nigeria Labour Congress (NLC) State Chairman, Comrade Hameed Benco, said the strike action stemmed from widespread anxiety and rumours over CPS implementation.
Also, trade Union Congress (TUC) leader, Comrade Akeem Lasisi, clarified that the industrial action aimed to attract the governor’s attention to pressing issues, particularly wage disparities between Ogun and neighbouring Southwestern states.
