Democratic Socialist Movement

For Struggle, Solidarity and Socialism in Nigeria

By - DSM

UNREMITTED PENSION DEDUCTION AND UNPAID GRATUITIES IN OGUN

  • CDWR Calls NLC, TUC JNC and Civil Society Organizations to Compel Gov. Abiodun to Address the Plights of Workers’ and Retirees

By Eko John Nicholas, Coordinator, CDWR Ogun State

Workers and the poor masses of Ogun state have been thrown into worsening economic hardships occasioned by the Dapo Abiodun-led APC government increasing attacks on the democratic rights of workers and the mass majority. The attacks are exacerbated by the implementation of the anti-poor capitalist neo-liberal policies of the Bola Tinubu-APC led government.

These policies which include but not limited to removal of fuel subsidy, devaluation of the Naira, increase in electricity tariff, amongst others largely account for the current cost of living crisis and mass hunger plaguing the poor and working masses across the country.

Across Ogun state, workers’ and retirees are suffering and agonizing under the unrelieved weights of the N40billion unremitted contributory pensions funds to the Pension Funds Administrators (PFAs) by the government. The retirees are equally groaning due to over N50billion unpaid gratuities and other entitlements. As at 2022, the total sum of the unpaid gratuities and other entitlements amounted to N68billion! In three and half years the Dapo Abiodun administration could only pay N2.5billion out of the outstanding funds!

For the record, the Campaign for Democratic and Workers Rights (CDWR) acknowledges the fact that the duo of former governors Gbenga Daniel and Ibikunle Amosun with their anti-workers and ant-poor policies, are equally culpable. They callously failed to pay gratuities and other entitlements to the retirees, as well as the non-remittance of the deducted salaries of workers meant for the contributory pensions’ funds to the PFAs.

Notwithstanding the fact that the government of Dapo Abiodun is running its second term in office, nothing has fundamentally changed regarding the plights of the retirees. Their demands remain largely undressed.

It is true that Dapo Abiodun government has increased his piecemeal payments of N500million quarterly to N2billion, and also released a lumped sum of N5.3billion recently. The outstanding still more than N50billion! Therefore, this is still a far cry, and more like a drop in the ocean. The retirees, with pittance of N5,000 monthly take home pay, could barely afford to feed themselves, buy drugs for curable aliments, and other basic necessities due to these tokenistic releases of gratuities and other entitlements by the government.

The CDWR condemns this seemingly paternalistic attitude of the government. We demand the immediate release of funds and payments of the gratuities and other entitlements due to the retirees. The Dapo Abiodun government is not doing anybody a favour by paying gratuities and other entitlements to retirees. It’s the rights of the retirees to enjoy the benefits their labour of 35 years of dedicated hard works in the services of the state. They earned it. The government should never under any guise weaponize retirements benefits.

Similarly, the CDWR also calls on the governor Dapo Abiodun to immediately remit the N40billion deductions from workers’ salaries for over 15 years meant for contributory pensions funds to the PFAs, without further delay. The continuous withholding of these deductions cannot be justified under any guise. In fact, it’s a hallmark of insensitivity, hard heartedness and unaccountability on the part of the state government for failing to remit these deductions.   It’s even more worrisome, given the fact that by July 1st, 2025,  the Ogun State Pension Reform Act of 2008 as amended in 2013 with extended transition period will come to an end. Sadly, there nothing to show regarding remission of funds deducted, save for the platitudes and the arm-twisting of the workers by the state government through the various trade unions leaderships: Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Joint Negotiating Council (JNC).

CDWR therefore calls on the NLC, TUC and JNC leaderships to discontinue their unprincipled collaboration with the state government, on false premise of maintaining industrial harmony, while the rights and interests of workers are infringed upon, and their working and living conditions deteriorate.

Ogun state is touted as a huge industrial hub of Nigeria, home to one of the largest industrial zones in Sub-Saharan Africa, the 8,000-hectare Agbara Industrial Estate and with an average ofN146 billion internally generated revenues, annually, according to Budgit reports, after Lagos and Rivers states. Yet, pensions and gratuities of workers and retirees, have now become big issues, leading to owing retirees over N50billion and over N40 billion unremitted salary deductions for the contributory pension funds!

In conclusion, CDWR reiterates its call on the trade unions and the union of pensioners on the need to commence mobilization of workers and retirees for a series of peaceful mass actions over their plights and demands. This should include press conferences, sit-ins, leafleting, mass meetings in work places, rallies and protests to compel the Dapo Abiodun government to accede to the demands of workers and pensioners.