Daud Olatunji, Abeokuta
Barely three months after the Ogun State Government and organised labour signed a Memorandum of Action (MoA) to end a week-long strike over the implementation of the Contributory Pension Scheme (CPS), tension is once again mounting among workers.
Labour unions have accused the government of reneging on critical parts of the July 21 agreement and have now issued a 21-day ultimatum to resume the suspended industrial action if urgent steps are not taken to correct what they call a “breach of trust.”
PLATFORM TIMES reports that the latest face-off traces back to the July 2025 industrial strike by employees across Ogun State’s ministries, departments, local governments, and parastatals.
The strike, which grounded public services between July 14 and 18, was triggered by the government’s insistence on enforcing the Ogun State Pension Reform Law (OGSPRL) 2013 (as amended) — a law mandating full implementation of the Contributory Pension Scheme.
Under pressure from eminent citizens and civil society, both sides met for marathon negotiations that produced the Memorandum of Action signed on July 21, 2025.
The MoA laid out a detailed roadmap: creation of a Pension Fund Management Committee (PFMC), an actuarial valuation of all past deductions, a data cleanup of civil servants’ records, and a commitment to remit both employer and employee contributions within statutory timelines.
The agreement also promised immediate payment of five years’ arrears (July 2, 2025 – July 1, 2030), followed by phased annual disbursements.
In return, organised labour suspended its strike, urging workers to resume duty in “good faith.”
The PFMC was inaugurated within the agreed 48 hours, and Pension Fund Administrators (PFAs) commenced a mass data verification exercise.
However, what was meant to sanitise the pension database has instead deepened the confusion.
According to a labour memorandum seen by PLATFORM TIMES, nearly 45 percent of workers’ data captured contained errors, including duplicate entries, wrong PINs, missing identities, and untraceable records.
“It is confounding and disturbing enough for one to be lost in the wilderness of administrative deficiency of this sort,” the labour letter lamented, describing how “bewildered employees besiege offices of PFAs that are themselves largely inoperative.
“ All issues relating to Retirement Savings Account (RSA), Personal Identification Numbers (PIN) and other enrollment processes will recommence immediately.The committee in (i) above shall determine the time frame for the exercise.
“With effect from July 2, 2025, the monthly employee’s contributions will be deducted and added to the employer’s contribution. Both will be remitted into the Retirement Savings Account (RSA) of Staff with the nominated Pension Fund Administrators (PFAs) on a monthly basis.
“The basis for remittances of outstanding deduction to the Pension Fund Administrators will incorporate all outstanding deductions plus Returns on Investment (ROI).
“ The total outstanding contribution liability, including the required Return on Investment (ROI) will be funded and credited to the RSAs of employees in phases as below: It is estimated that the calculation of the actuarial valuation of the outstanding deductions will take about six to eight weeks.
“Upon (a) above, payments of outstanding deduction including (ROI) for the first five years-2nd July, 2025 to 1″t July,2030 would be made immediately.
“The second annual disbursement will be done in August, 2026 to cover year 2nd July,2030 to 1st July,2035.
“The outstanding balance of Seven years will be treated annually thereafter.
vi. It is mutually understood that the v(a) above wil be completed by 30th September, 2025.
“Otherwise,the organized labour union in conjunction with the PFMC may request for the deferment of the commencement date of CPS to a date not later than 31″ December, 2025”, the MoA stated.
… Delayed Remittances, Breach Of Pension Law
PLATFORM TIMES further reports that section 19(2) of the OGSPRL 2013 stipulates that pension deductions must be remitted to PFAs not later than seven days after salary payment.
But PLATFORM TIMES’ investigation revealed that recent deductions were not remitted within the legal timeframe, violating both the state law and the MoA.
It was further gathered that the government had engaged an actuarial firm to compute the value of unpaid deductions since 2006 — including interest accrued on both employee and government contributions.
The firm was expected to complete the process within six to eight weeks, by September 30, 2025.
However, as of mid-October, no report has been released, no valuation published, and no arrears paid.
“Nearly ten weeks have gone by since the MoA, with no clear progress,” the labour coalition wrote to the governor.
… Ogun Retirees Left In Limbo
One of the most tragic fallouts is the status of workers who retired after July 1, 2025.
Many of them, having served under the consolidated salary structure, are now caught between the old Defined Benefits Scheme and the new CPS — with neither pension nor gratuity in sight.
“Public servants who retired in July have not received any payment — not gratuity, not pension,” confirmed Akeem Lasisi, Chairman of the Trade Union Congress (TUC), Ogun State.
… Workers’ Grievances, Labour’s Position
In a joint statement to Governor Dapo Abiodun, the organised labour accused the government of failing to honour the core of the July pact.
“Our conviction in the government’s readiness to fully implement the pension law is shaken,” the letter said. “We have endured with patience and pain, but there exists no more steam to push ahead.”
“Our conviction of the pledged readiness of the State Government on the full implementation of the OGSPRL is also shaken, especially in the adherence to the dictates of the law that, “remittance of pension deduction to PFAs must be remitted not later than a maximum of seven (7) days after payment of monthly salary.” The recent payments fell short of this proviso.
“Your Excellency, from the last fact, it is quite clear that the line-up sequence of actions has failed to align with the frenziness of expectations of the State workforce.
“ It was the promise of “immediacy” of the owed arrears that actually aided the State Organised Labour to had successfully persuaded the workers to return to their duties back in July.
“Incidentally, nearly ten weeks have gone by since the date of the mutually agreed MoA, (Monday, 21st July to Wednesday, 7th October, 2025) with no clear routes to the promised El dorado.
“Expectedly, it begs the question on the sequence of actions implemented so far in “putting in place appropriate legislative framework ” on the pronouncements of the State Government that:
“We are still awaiting the return of the OGSPRL, 2006, (amended 2013) to the Ogun State House of Assembly for the essential amendments. After all, it is germane that all agreements must be implemented.
“It is saddening and very pathetic that Public Servants who retired in (i) above from 1st July, 2025 have no clearly defined categorisation of pension scheme they fall into.
“For them, there had been a total stoppage of contributory pension deductions following their appointments and each of them scaled consolidated salary structures.
“ The dilemma here is the stretch of stoppage and its corresponding financial valuation, having earned handsomely from such privileged statuses. To those retirees in this category, the application of the OGSPRL in its full dictates becomes absolutely problematic.
“We have endured so long with so much patience and pain particularly on this haphazard implementation of the OGSPRL and there exists no more steam nor force in our engine to push ahead with as basic as the desire to live.
“The State Government hereby is put on twenty-one (21) day notice, from the date of this letter, on the resumption of the suspended industrial action upon lack of action(s) on our prayer.”
TUC Chairman Akeem Lasisi told PLATFORM TIMES that although the government had resumed monthly deductions, it failed to pay the backlog of deductions and counterpart funding promised by September.
“They promised to clear all outstanding deductions from July 2 up to July 2030. But they have not paid a kobo,” he said.
The NLC Chairman, Ademola Benco, confirmed the 21-day ultimatum, saying five days had already elapsed as of Friday, October 17.
“We are awaiting the government to call us. So far, they have not updated us on any progress. That’s why labour has resolved to act,” Benco said.
Labour unions are now demanding that the commencement of the CPS be deferred to 2042, when all current workers under the Defined Benefits Scheme would have exited the service — a proposal already captured as item (vi) in the MoA.
… Government’s Response
Efforts to get a reaction from the state government proved abortive as of press time.
Neither the Secretary to the State Government, Mr. Tokunbo Talabi, nor the Head of Service, Mr. Kehinde Onasanya, could be reached as if the time of filing this report.
However, during the July negotiations, government representatives had pledged transparency and swift action on remittances, saying the CPS would “secure workers’ future and restore confidence in the pension system.”
… Expert Analysis On The Matter
Public administration experts say the Ogun CPS controversy highlights Nigeria’s broader pension management crisis.
A pension law scholar said the failure to conduct timely actuarial valuation undermines the credibility of any contributory system.
“Without actuarial valuation, there’s no basis for remitting accurate balances. It’s like trying to build a house without a foundation,” he said.
A comparative review shows that Lagos and Ekiti States have achieved better pension compliance by maintaining independent pension boards and publishing periodic remittance reports — mechanisms Ogun is yet to implement despite legal backing since 2006.
The crisis has left many civil servants anxious and demoralized.Some retirees who left service in August, the uncertainty is devastating.
Economists warn that delayed remittances and unpaid pension liabilities could hurt consumer confidence and local economic activity, as pensioners form a large part of Ogun’s middle-income population.
… The Road Ahead Of Deadline
As the 21-day ultimatum clock ticks, the Ogun State Government faces a crucial test of credibility.
Failure to act swiftly could plunge the state into another round of industrial unrest, just months after the July shutdown that paralysed public offices, hospitals, and schools.
Labour insists the solution lies in transparent data verification, prompt remittance, and full publication of actuarial findings.
Observers say only a comprehensive legislative amendment — backed by accountability — can restore confidence in the state’s pension system.
As one union leader put it: “We are not fighting the government. We are fighting for our future.”
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