Ogun to begin contributory pension scheme implementation in July 2025

Ogun State Governor, Prince Dapo Abiodun, has announced that the full implementation of the Contributory Pension Scheme (CPS) for state workers will commence this month, July 2025.

Abiodun made this known during a meeting with organised labour in Abeokuta, convened to address concerns over the CPS and other issues that led to a recent workers’ strike in the state.

The governor assured that workers retiring from July 2, 2025, will receive their benefits under the new scheme, with a structured 10-year payment plan. The first phase of payments will cover July 2025 to July 2030, while the second phase, starting in 2026, will span July 2030 to July 2035.

“There will be no gratuity scheme as this will be discontinued from July 2, 2025. All consolidated salaries will revert to the Contributory Pension Scheme,” he stated.

He explained that his administration would make provisions for the payment of retirees during his remaining two years in office, while future payments would extend into the tenure of his successor. “Anyone retiring will receive their benefits promptly, and we will work with PENCOM to ensure obligations are met. We will also pass the necessary laws to back this decision,” he added.

Governor Abiodun further disclosed that all employees will be enrolled under the CPS once the Pension Fund Administrators (PFAs) are selected. He also revealed that while inherited leave allowances up to 2013 have been cleared, arrears from 2014 to 2022, amounting to N8 billion, will be paid in tranches.

Since 2019, the state has paid N37 billion in gratuities to local government and state retirees, and N163 billion in pensions to both categories of workers. He noted that his administration had conducted six promotion exercises in the past five years, with payments for 2023 and 2024 promotions scheduled for September and December 2025, respectively.

The governor also pledged to review the basic salaries of workers and urged labour unions to pursue dialogue rather than industrial action.

In response, the State Chairman of the Nigeria Labour Congress (NLC), Comrade Hameed Benco, said the strike was driven by fears and misinformation surrounding the CPS implementation.

Similarly, the State Chairman of the Trade Union Congress (TUC), Comrade Akeem Lasisi, clarified that the strike was aimed at drawing the government’s attention, especially following the July 1, 2025, enforcement of the amended 2006 Pension Reform Act. He also called for the adjustment of workers’ basic salaries to match those in other southwestern states.