Ogun State Workers’ Strike Persists as Labour Rejects Governor’s Proposals

The indefinite strike by Ogun State’s civil and public servants, which began on July 15, 2025, shows no signs of resolution as organized labour, comprising the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and Joint Negotiating Council (JNC), has rejected Governor Dapo Abiodun’s latest proposals. The strike, disrupting government offices, hospitals, and schools across the state, is driven by the government’s failure to remit over N82 billion in contributory pension deductions over 14 years, alongside unresolved issues like the non-implementation of the new minimum wage, eight years of unpaid leave allowances, stalled promotions for 2023 and 2024, and consequential pension adjustments.

We have enumerated below, the latest on the Strike and status of the discussions with the State Government

But First – Background of the Strike

The strike was declared following a statewide congress on July 14, 2025, at the Arcade Ground, Oke-Mosan, Abeokuta, where workers unanimously voted to suspend services indefinitely. The primary grievance is the dysfunctional Ogun State Pension Reform Law (OGSPRL) 2008, amended in 2013, which established the Contributory Pension Scheme (CPS). The CPS requires employers and employees to contribute 7.5% each of workers’ basic salaries monthly to Pension Fund Administrators (PFAs). However, the state government is alleged to have only remitted 34 out of 204 expected monthly contributions over 17 years, amounting to less than three years’ worth, leaving an N82 billion deficit.

Additional demands include:

• Implementation of the 2024 minimum wage with consequential adjustments.
• Payment of eight years of leave allowance arrears (2014–2022, totaling N8 billion).
• Release of 2023 and 2024 staff promotions.
• Consequential adjustments on pensions for retirees.

Proposal from the State Government

On July 18, 2025, Governor Abiodun outlined a plan to address the pension crisis and other demands:
Contributory Pension Scheme (CPS): Full implementation of the CPS starting July 2, 2025, with immediate payments for workers retiring from that date. A 10-year payment plan was proposed, divided into two phases:
Phase 1 (2025–2030): Clearing outstanding contributions for retirees from July 2, 2025, to July 2030, starting in 2025.
Phase 2 (2030–2035): Covering retirees from July 2, 2030, to July 1, 2035, beginning in 2026.
Gratuity Discontinuation: From July 2, 2025, the gratuity scheme will be discontinued, and all consolidated salaries will revert to the CPS model.

Other Concessions:
Payment of leave allowances inherited up to 2013, with N8 billion outstanding from 2014–2022 to be paid in tranches.
Commencement of promotion payments for 2023 in September 2025 and for 2024 in December 2025.
A review of basic salaries to align with Southwest regional standards.
Payment of N37 billion in gratuities and N163 billion in pensions to state and local government retirees since 2019.

Labour’s Response

Following a seven-hour emergency meeting on July 18, 2025, in Abeokuta, the organized labour, representing 25 affiliate unions, issued a communique rejecting the governor’s proposals, particularly on the CPS. The unions accepted concessions on the minimum wage, leave allowances, promotions, and pension adjustments but maintained that the CPS remains “dysfunctional”. The unions have demanded either the outright cancellation of the CPS or its postponement to 2042, as recommended by the Adekunle Hassan-led Committee, citing the scheme’s failure to deliver fair retirement benefits. For example, NLC Chairman Comrade Hameed-Benco Ademola is allegded to have disclosed that a worker retiring under the old pension scheme in the state might receive over N300,000 monthly, while a CPS retiree for the State on the same cadre could allegedly earn just N60,000, causing significant discontent. (Note, under CPS a retiree receives minimum of 50% of their last salary as monthly pension).

“The council-in-session is displeased with the resolve of the state government, especially on the Contributory Pension Scheme,” the communique stated, signed by NLC’s Ademola, TUC’s Comrade Akeem Lasisi, and JNC’s Comrade Isa Olude. The strike was reaffirmed to continue until the CPS issue is resolved to the workers’ satisfaction. Labour leaders emphasized that past engagements with government officials yielded “unkempt promises,” reinforcing their demand for direct dialogue with Governor Abiodun. They also dismissed threats or intimidation, with Ademola stating, “No amount of threat or intimidation could make us call off the strike except there is a concrete agreement with the governor.”

Broader Support and Impact

The strike has garnered significant support:

Campaign for Democratic and Workers’ Rights (CDWR): The Ogun State chapter, led by Eko John Nicholas, described the N82 billion non-remittance as a “grave injustice” and called for intensified mass actions beyond a sit-at-home protest. The group condemned alleged government intimidation and linked the pension crisis to broader anti-worker policies, including underfunding of education and healthcare.

Peoples Democratic Party (PDP): The Ogun State PDP, led by Chairman Abayomi Tella, endorsed the strike as “lawful and legitimate,” accusing the Abiodun administration of “continuous plunder” of workers’ savings.

Nigeria Union of Teachers (NUT): The NUT Ogun State wing shut down all public primary and secondary schools, leaving students, including those writing exams, stranded. The union cited the CPS, unpaid leave allowances, stalled promotions, and minimum wage issues as reasons for joining the strike.
The strike has disrupted public services, including government offices, hospitals, and schools, with significant economic and social impacts. Students have been turned away from schools, and parents are grappling with the closure of educational institutions.

Historical Context

The pension crisis spans multiple administrations:
Gbenga Daniel (2003–2011): Allegedly left 25 months of unremitted deductions.
Ibikunle Amosun (2011–2019): Allegedly remitted only nine months’ pension deductions in eight years.
Dapo Abiodun (2019–present): Allegedly has not remitted any CPS contributions in six years, exacerbating the N82 billion pension backlog.
Previous strikes, such as the 2022 action over 21 months of unremitted deductions and the 2020 warning strike over minimum wage delays, highlight a pattern of unresolved labour disputes in Ogun State.

Looking Ahead

The standoff remains unresolved, with labour insisting on cancellation or postponement of the CPS. The governor’s commitment to a 10-year payment plan and other concessions has not swayed the unions. Stakeholders, including the CDWR and PDP, have urged both parties to prioritize dialogue to restore industrial harmony, but labour’s firm stance suggests the strike could persist without significant concessions. The situation is dynamic, with potential for further developments. Workers remain united, as emphasized by the NLC’s slogan, “A workers united can never be defeated,” while the government faces pressure to address the N82 billion pension debt and other demands promptly.

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