The Ogun State workers have suspended their industrial action following an agreement with the state government on the implementation of the Contributory Pension Scheme (CPS).
Penpushing reports that the workers called off the strike 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.
The strike, it would be recalled began on July 14, 2025, however, 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.
Penpushing further reports that the labour unions explained that the decision to suspend the strike was influenced by interventions from traditional rulers, national labour executives, and labour veterans.
The Chairman of Nigeria Labour Union (NLC) Comrade Hameed Ademola explained that the unions in same vein 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’, Ademola, said.
Penpushing also reports that 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.
The highlights of the agreement was signed by Secretary to the State Government Tokunbo Talabi, Ademola, and Joint Negotiation Congress (JNC) chairperson, Isa Olude, adding that a Pension Fund Management Committee (PFMC) would be constituted within 48 hours to oversee the administration of the Contributory Pension Scheme (CPS), in line with Section 19(2) of the Pension Reform Law (2006).
Penpushing reports that the agreement 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 agreement reads.
‘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’, stated.
Penpushing further reports that Secretary to State Government 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.
The scribe 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.
Penpushing also reports that the agreement stipulates that the valuation must be completed by September 30, 2025, and If this deadline is not met, the Organised Labour and Pension Fund Management Committee (PFMC) may propose a deferral of the Contributory Pension Scheme (CPS), implementation to a date not later than 31 December.
The government in same vein, pledged to introduce necessary legislation to guard against future defaults in pension remittances, while the committee will have the authority to request and verify all information from the appointed actuary to ensure transparency.
Penpushing reports that the Memorandum of Agreement (MOA) stated that the files of workers who retired voluntarily before July 2, 2025 will be assessed individually, and no worker will face reprisals for participating in the strike.
Meanwhile, the Secretary to State Government said the administration expects the state’s workforce to reciprocate its gesture with continued loyalty, dedication, and efficiency in their duties.
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