Ogun State Governor, Prince Dapo Abiodun, has said that his administration will commence full implementation of the Contributory Pension Scheme (CPS) for State workers from this month of July, 2025.

Governor Abiodun gave this pledge when he met with the organised labour to address the grey areas in the implementation of the Contributory Pension Scheme (CPS) and other sundry matters that led to the ongoing strike embarked upon by workers in the State in Oke-Mosan, Abeokuta.

Abiodun said his administration would ensure immediate payment for workers who retire from July 2, 2025, through the Contributory Pension Scheme, indicating that 10-year payment plan would commence from 2025 to 2030 under the first phase, while the second phase, which would commence next year, would be from 2030 to 2035.

He said with the arrangement, payment would be made for the remaining two years of his tenure, while eight years of payment would be for his successors.

"We have decided that, in phase one we will pay outstanding contributions for our retirees from July 2, 2025, to July 2030, immediate payment will be made.

"Phase 2 which will be second payment will start from next year 2026, for those who will be retiring from July 2, 2030, to July 1, 2035.

"Also, immediate payments will be made for those who will be retiring beyond my tenure in 2027 and beyond the tenure of my successor as well; that is 10 years.

"There will be no gratuity scheme as this will be discontinued from July 2, 2025. All Consolidated Salaries will revert back to the Contributory Pension Scheme.

"A lot of work has gone into this. In the past, we found out that those who have been managing our pensions were not actually fit for the purpose; they were not qualified, and that has made things slower than they should have been.

"Anyone retiring will receive their benefits, and we will provide PENCOM with the resources to ensure that they meet the obligations of those who retire, and that will be done promptly. We will pass the appropriate laws to back this decision," he said.

The Governor noted that his administration would ensure the immediate enrollment and registration of all employees under the Contributory Pension Scheme (CPS) after relevant Pension Fund Administrators have been chosen.

Governor Abiodun noted that his government had paid inherited leave allowances up to 2013, while the amounts from 2014 to 2022, totaling N8 billion, are yet to be paid, but that it would be paid in tranches.

He disclosed that the sum of N37 billion had been paid as gratuities to Local Government and State retirees and N163 billion paid as pension to both Local and State workers between 2019 till date.

Abiodun said his administration had organised six promotion exercises in the last five years, adding that the payment for 2023 and 2024 would commence in September and December 2025 respectively.

"I have decided that we will commence payment for those promoted in 2023 in September 2025, while those promoted in 2024 will now be paid in December 2025," he added.

He assured the labour leaders that the government would look into the basic salary of the workers with a view to making necessary adjustments.

While calling on the organised labour to always find peaceful ways to engage the government on issues affecting workers' welfare rather than embarking on industrial disputes, Prince Abiodun appreciated them for supporting his administration since 2019, which had led to the socio-economic development being witnessed in the State.

Responding, the State Chairman of the Nigeria Labour Congress (NLC), Comrade Hameed Benco, said labour resolved to embark on the strike as a result of rumours, insinuations and fears about the implementation of the Contributory Pension Scheme, which had been a source of worry for the workers.

The State Chairman of the Trade Union Congress (TUC), Comrade Akeem Lasisi, on his part, said the action of the labour unions to call for the strike was not to cripple the state's economy but to get the attention of the governor, especially with the coming into force of the amendment of the 2006 Pension Reform, which came into effect on July 1, 2025.

He called on the State Government to adjust the basic salaries of the state workers to be commensurate with those of other states in the southwest of the country.