Ogun State workers have suspended their industrial action following an agreement with the state government on the implementation of the Contributory Pension Scheme (CPS).
The strike, which began on 14 July, was called off on Tuesday after leaders of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and Joint Negotiating Council (JNC) signed a Memorandum of Action (MoA) with the state government.
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According to a joint statement by the unions on Tuesday, the agreement outlined timelines for clearing pension arrears and commencing monthly deductions into workers’ Retirement Savings Accounts (RSA) starting from July.
The labour unions said the decision to suspend the strike was influenced by interventions from traditional rulers, national labour executives, and labour veterans.
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They also cited “constructive engagements” with government officials and growing security concerns as factors that contributed to the resolution.
“In light of these developments and in consideration of the temporary agreements reached with the government, Organised Labour has resolved to suspend the strike. The agreement is taken as a demonstration of good faith and commitment by the state government,” the NLC chairperson, Hameed Ademola, said.
He assured workers that the unions would closely monitor compliance with the agreed terms and reiterated that no worker in the state or local government service would be victimised for participating in the strike.
Highlights of the agreement
In a separate MoA signed by Secretary to the State Government Olatokunbo Talabi, Mr Ademola, and JNC chairperson, Isa Olude, a Pension Fund Management Committee (PFMC) would be constituted within 48 hours to oversee the administration of the CPS, in line with Section 19(2) of the Pension Reform Law (2006).
They said all efforts to address issues relating to Retirement Savings Accounts, Personal Identification Numbers, and enrolment processes will recommence immediately, and the committee will determine the timeline for completion.
“With effect from 2 July 2025, monthly employee contributions shall be deducted and added to the employer’s contribution. Both shall be remitted to the Retirement Savings Accounts (RSA) of staff with the nominated Pension Fund Administrators (PFAs) on a monthly basis.
“The remittance of outstanding deductions to the Pension Fund Administrators shall incorporate all outstanding deductions, along with the applicable Returns on Investment (ROI). The total outstanding contribution liability, including the required ROI, shall be funded and credited to the RSAs of employees in phases,” Mr Talabi stated.
Mr Talabi said the first phase of payment, covering deductions from July to July 2030, will commence immediately after the actuarial valuation exercise, which is expected to last between six and eight weeks.
He explained that the second round of disbursements, scheduled for August 2026, will cover the period from July 2030 to July 2035. The remaining balance, covering the final seven years, will be paid annually thereafter.
The agreement stipulates that the valuation must be completed by 30 September. If this deadline is not met, the Organised Labour and PFMC may propose a deferral of the CPS implementation to a date not later than 31 December.
The government also pledged to introduce necessary legislation to guard against future defaults in pension remittances.
The committee will have the authority to request and verify all information from the appointed actuary to ensure transparency.
Also, the MOA stated that the files of workers who retired voluntarily before 2 July will be assessed individually, and no worker will face reprisals for participating in the strike.
Mr Talabi said the administration expects the state’s workforce to reciprocate its gesture with continued loyalty, dedication, and efficiency in their duties.
Workers express discontent
Despite the agreement, some workers expressed dissatisfaction, accusing union leaders of ignoring the unresolved issue of the N70,000 national minimum wage, which has yet to be implemented more than seven months after its announcement.
“The union leadership has failed us because most of them are close to their retirement,” said one worker who spoke to Premium Times anonymously.
“The pension issue is important, but what about our salaries? Prices are rising, but our wages haven’t changed.”
Another civil servant described the decision to suspend the strike as betrayal, noting that the strike presented a rare chance to demand both pensions and improved wages, but that opportunity was now lost.
Despite their lamentations, the Union has requested the workers to resume work immediately, with a guarantee that no one will be victimised for joining the strike.
As of press time, the Ogun State Government had not issued a statement clarifying when the new minimum wage would be implemented.
Background
In October 2024, Governor Dapo Abiodun approved N77,000 as the new minimum wage for the lowest-paid workers in Ogun State.
The announcement followed a meeting between state officials, led by Mr Talabi, and the leadership of the NLC, TUC, and JNC.
Mr Talabi said at the time that the directive was part of efforts to address the rising cost of living and that the governor had also encouraged the organised private sector to implement similar measures to improve the welfare of their workers.
READ ALSO: Ogun workers’ strike continues as Labour rejects Governor Abiodun’s proposal
He noted that a monitoring team would be set up to ensure compliance.
Mr Ademola welcomed the announcement, describing it as the highest minimum wage in the country and confirming that the new wage would not be taxed.
TUC’s Akeem Lasisi and JNC’s Isa Olude also praised the move, noting that consequential adjustments for pensioners and other categories of staff would follow consultations.
Head of Service, Kehinde Onasanya, said the wage approval demonstrated the state government’s responsiveness and would boost morale among public workers.
However, nearly a year after the announcement, implementation of the new wage remains stalled, and workers continue to press for clarity and action.
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