Workers in Ogun State have suspended their statewide strike following a landmark agreement with the state government on the implementation of the Contributory Pension Scheme (CPS). The industrial action, which began on July 14, 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 government officials.
The agreement outlines key measures to clear pension arrears and begin monthly deductions into workers’ Retirement Savings Accounts (RSAs), effective July 2025.
Speaking on the development, NLC Chairperson Hameed Ademola described the deal as “a demonstration of good faith and commitment by the state government,” and assured workers that compliance would be strictly monitored. He emphasized that no employee would be penalized for participating in the strike.
Labour leaders said their decision to suspend the action followed interventions from traditional rulers, national labour executives, and growing security concerns across the state.
A separate MoA signed by Secretary to the State Government Tokunbo Talabi mandates the constitution of a Pension Fund Management Committee (PFMC) within 48 hours. The PFMC will oversee the CPS rollout, including RSA enrolment, PIN verification, and contribution tracking.
Talabi confirmed that from July 2, 2025, both employer and employee contributions along with applicable investment returns will be deducted and remitted monthly to workers’ RSAs. Outstanding liabilities will be settled in three phases:
- Phase 1 (post-valuation): July 2025 to July 2030
- Phase 2: August 2026 disbursement covering July 2030 to July 2035
- Final Phase: Annual payments for the remaining seven years
The actuarial valuation, which will determine the financial obligations and payment schedule, is to be completed by September 30. If delayed, CPS implementation may be deferred but not beyond December 31, 2025. The government also pledged to introduce legislation to prevent future defaults on pension obligations.
While directing workers to return to work immediately, the unions reaffirmed their commitment to ensuring the timely execution of both pension reforms and wage agreements.
