The organized labour unions in Ogun State have issued a stern warning of potential industrial action due to the government’s failure to remit over N40 billion in contributory pensions deducted from workers’ salaries over the past 15 years.
In a letter addressed to Governor Dapo Abiodun, signed by Comrade Akeem Lasisi of the Trade Union Congress (TUC), Comrade Hammed Benco-Ademola of the Nigeria Labour Congress (NLC), and Isa Olude of the Joint Negotiation Council (JNC), the unions expressed deep concern over the government’s lack of transparency and commitment to resolving this critical issue.
Despite the establishment of a committee in October 2022 to investigate the matter, the unions lamented that the state government has failed to disclose the committee’s findings. They highlighted that with less than a year remaining until July 1, 2025 — the effective date for the Contributory Pension Scheme as per the amended 2013 State Pension Reform Law — there has been no tangible progress towards its implementation.
The unions pointed out, “We are talking about over N40 billion in unremitted deductions, spanning more than 160 months. Former Governor Gbenga Daniel left office owing 25 months, while ex-Governor Amosun paid only 9 months during his eight-year tenure. Governor Abiodun, since assuming office in 2019, has not remitted any funds towards this scheme.”
They emphasized that the government has consistently failed to remit the 7.5% contributory pensions deducted monthly from workers’ salaries to Pension Fund Administrators (PFA), nor has it fulfilled its counterpart contribution of 7.5%, totaling 15%, as required by law.
The letter further stated, “We cannot ignore the precarious situation where our future retirement benefits are jeopardized due to the government’s mishandling of our pension funds over the years. This calls for urgent action to rectify the situation.”
Highlighting the urgency of the matter, the unions demanded the immediate release of the Committee’s report on the Contributory Pension Scheme and the State Government’s White Paper on the issue. They underscored that transparency in this regard would alleviate the mounting tension among workers, aggravated by the current economic hardships.
In conclusion, the letter warned of potential industrial unrest if the government fails to address these concerns promptly and transparently. It urged Governor Abiodun to prioritize the welfare of state workers and ensure the timely implementation of the Contributory Pension Scheme to secure their future post-retirement.
Punch