Full Implementation of Contributory Pension Scheme to Begin This Month, Abiodun Tells Labour
Abeokuta – Ogun State Governor, Prince Dapo Abiodun, has announced that his administration will commence the full implementation of the Contributory Pension Scheme (CPS) for state workers starting this July 2025.
The governor made this declaration during a meeting with organised labour leaders to address concerns surrounding the CPS implementation and other issues that led to the ongoing strike by state workers.
Speaking at the Governor’s Office in Oke-Mosan, Abeokuta, Abiodun assured that workers retiring from July 2, 2025, would receive immediate payments under the CPS. He outlined a phased payment plan, with the first phase covering 2025 to 2030 and the second phase spanning 2030 to 2035.
He explained, “In phase one, we will pay outstanding contributions for retirees from July 2, 2025, to July 2030. Next year, phase two will cover those retiring between July 2, 2030, and July 1, 2035. This arrangement ensures payments beyond my tenure and that of my successor.”
The governor also confirmed discontinuing the gratuity scheme from July 2, 2025, with all consolidated salaries reverting to the CPS. He acknowledged past inefficiencies in pension management and pledged prompt payments through PENCOM.
“We will pass the necessary laws to back this decision and ensure all employees are enrolled under the CPS after selecting appropriate Pension Fund Administrators,”he added.
Abiodun disclosed that his administration had paid inherited leave allowances up to 2013, with N8 billion outstanding for 2014–2022 to be paid in tranches. Additionally, N37 billion was paid as gratuities to local and state retirees, while N163 billion was disbursed as pensions between 2019 and now.
The governor also addressed promotions, stating that payments for 2023 and 2024 promotions would begin in September and December 2025, respectively. He further promised to review workers’ basic salaries for necessary adjustments.
Urging labour to adopt dialogue over strikes, Abiodun appreciated their support since 2019, which he credited for the state’s socio-economic progress.
In response, NLC State Chairman Comrade Hameed Benco said the strike was prompted by workers’ fears over CPS implementation. TUC Chairman Comrade Akeem Lasisi clarified that the action aimed to draw the governor’s attention, particularly following the amended 2006 Pension Reform Act effective July 1, 2025. He also called for salary adjustments to match Southwest counterparts.
The meeting marks a critical step toward resolving the industrial dispute and ensuring smoother pension administration in Ogun State.
