Breaking: Gov Abiodun Declares Full Pension Scheme Rollout This Month

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

Governor Abiodun made this known during a meeting with leaders of organised labour aimed at resolving issues surrounding the CPS and other matters that prompted the current workers’ strike in the state.

Speaking at the Governor’s Office in Oke-Mosan, Abeokuta, the governor assured that workers retiring from July 2, 2025, will begin receiving their pensions through the CPS immediately.

He further disclosed a structured two-phase 10-year payment plan: the first phase (2025–2030) will cover payments for retirees within that period, while the second phase (2030–2035) will start in 2026. According to him, payments will extend beyond his administration’s tenure, ensuring continuity under his successor.

“In the first phase, we will pay outstanding contributions for retirees between July 2, 2025, and July 2030. The second phase will handle those retiring between July 2, 2030, and July 1, 2035,” Abiodun explained.

The governor also announced that gratuity payments would end from July 2, 2025, as all consolidated salaries will transition to the CPS model. He revealed previous pension managers were not suitable for the task, contributing to delays.

“Every retiree will receive their benefits. We will ensure PENCOM has the necessary resources to meet these obligations promptly,” he said, adding that the required legislative framework would soon be enacted to support the new scheme.

He also directed the immediate registration of all employees under the CPS once appropriate Pension Fund Administrators are selected.

Governor Abiodun highlighted his administration’s efforts, including paying inherited leave allowances up to 2013. He admitted that N8 billion in leave allowances from 2014 to 2022 is still outstanding but would be cleared in phases.

According to him, the state has paid N37 billion in gratuities to retirees and N163 billion in pensions between 2019 and the present.

The governor also noted that six promotion exercises had been conducted in five years. Payments for promoted workers in 2023 will begin in September 2025, while those for 2024 will start in December 2025.

He assured labour that the government will review the workers’ basic salaries for necessary adjustments and urged union leaders to explore dialogue rather than industrial action.

In response, NLC State Chairman, Comrade Hameed Benco, said the strike was triggered by fears and misinformation surrounding the CPS.

TUC Chairman, Comrade Akeem Lasisi, added that the action was not meant to disrupt the state economy but to draw attention to workers’ concerns, especially with the enforcement of the amended 2006 Pension Reform Act that took effect on July 1, 2025. He urged the state government to align workers’ salaries with those in other southwestern states.