From Laide Raheem, Abeokuta
The organised labour in Ogun State has threatened to embark on industrial action over the failure of the state government to remit over N40 billion contributory pensions deducted from the workers’ salaries in the last 15 years.
The unions, including the Trade Union Congress (TUC), the Nigeria Labour Congress (NLC), and Joint Negotiation Council (NJC), disclosed this in a letter to the state governor, Dapo Abiodun.
In the letter signed by Akeem Lasisi, Chairman TUC, Ogun State, his NLC counterpart, Hammed Benco-Ademola, and JNC Chairman, Isa Olude, the labour unions lamented that despite setting up a committee on the contentious issue in October 2022, the incumbent administration has refused to make the report of the committee public.
They claimed that they were forced to write the letter to the governor because less than a year to July 1, 2025, which is the effective date for the contributory pension scheme according to the 2013 State Pension Reform Law amended in 2008, there was nothing on ground to justify the sincerity of the government towards the implementation of the pension scheme.
The labour unions said: “We are talking of over N40 billion unremitted deductions. The government altogether owed over 160 months.
“Former Governor Gbenga Daniel owed 25 months before he left office. Former Governor Amosun paid just nine months out of his eight years tenure, while Governor Abiodun has not paid a dime since he came to office in 2019.”
The unions said the government has refused to remit to the Pension Fund Administrators (PFA) the 7.5 percent contributory pensions deducted monthly from the salary of each worker for over 15 years, while the government (employer) has equally failed to pay its counterpart contribution of 7.5 percent of each worker’s salary, making a total of 15 percent to the PFA.
The workers said they cannot pretend that all is well when their fate is hanging in the balance, with no hope of having their welfare taken care of in retirement with the way the government has handled their pension fund over the years.
The letter partly read: “Having thoroughly and objectively assessed the entire contributory pension scheme routes from its legislation, implementation vis-a-vis its current position, one cannot but hold the conclusion that we are fully set for industrial unrest in the state civil/public service.
“To the best of our knowledge, the state has maintained its discouraging showing on the scheme with a rather disturbing trend that nothing has changed, really.
“Up until now, the report of the much-publicised committee on it set up back in October, 2022, has not been made public.
“Your Excellency will agree with us that, as July 1, 2025, draws near, which is the effective date for the Contributory Pension Scheme (Ogun State Pension Reform Law, 2008 (amended 2013), so also is the justification for the apprehension on the true stand of the state government on its genuine interest and commitment to the welfare of her workforce after retirement.
“Fact is that the scheme has not fared better in the state and our worries that the humongous unremitted deductions in the last 14 years plus, no doubts, poses obviously, as the daunting debts that even a welfarist state would have some measures of restraints in an attempt to offset it.
“Interestingly, our membership of the committee on the contributory pension scheme availed us the available true statistics of the scheme.
“At best, it could well be rested or be shifted to a much later date when finances of the state could accommodate its financial demands.
“For now, Your Excellency, the entire Ogun State Civil/Public Service employees are eager to learn about their fate before July 1, 2025.
“Immediate release of the report of the committee on the contributory pension scheme and the release of the state government white paper on it would assist in dousing the tension which, unfortunately, is compounded by the grinding economic pains ravaging our homes.”