The plight of retirees waiting to collect their pension and gratuity is a troubling concern in most states in Nigeria. In most parts, their story evokes emotion and sympathy. The contributory pensions scheme established under the administration of former President Olusegun Obasanjo was meant to address those concerns. Regrettably, the payment processes have been fraught with irregularities and unnecessary administrative bottleneck.

Some states even deliberately default in the prompt settlement of entitlements belonging to the retirees, causing them anxiety and untold hardship. Many retirees have lost out within the waiting period. That is not what the scheme is meant to be only that some authorities are insensitive to the plight of concerned beneficiaries. 

The narrative has change under Governor Dapo Abiodun’s administration in Ogun State. When the present administration came into office in 2019, the backlog of pension arrears inherited from the previous government was over N80 billion. This figure was disclosed by the governor during an interactive session with pensioners, where he also announced an increment in quarterly pension payments to N1 billion. Additionally, the administration has been working to defray the backlog, having paid N179.7 billion in pensions and gratuities since 2019.

Since the coming of the administration, pension payment in Ogun State has seen significant improvements in several areas, including the clearing pension backlog, timely payments as well as in an increase in quarterly and monthly payments. Pensions are now paid concurrently with workers’ salaries, reflecting a policy shift toward more inclusive and timely worker welfare. For instance, the governor has announced an increment in quarterly pension payments to N1 billion, while the state government pays over N791 million monthly to retired teachers and local government workers, with a total of 11,616 retirees benefiting from the State Transition Pension Scheme. Overall, Governor Abiodun’s administration has prioritised pension payments and workers’ welfare, aiming to provide a more stable financial future for retirees. All this indicates the administration’s commitment to honouring its financial obligations to retirees.

In appreciation of that commitment, Ogun State retirees have generally expressed and commended Governor Dapo for prompt payment of their pensions and gratuities. They lauded the governor’s decision to increase the quarterly disbursement of gratuity from N600 million to N1 billion, describing it as a demonstration of his commitment to their welfare.

Similarly, the Nigeria Union of Pensioners (NUP) has also praised the state government for consistently paying monthly pensions, enabling retirees to plan for essential expenses and manage healthcare needs. They acknowledged the government’s efforts to clear pension arrears, with the administration having paid N2.5 billion in gratuities as of 2022 and committing to continue prioritising pension payments. The union urged the governor to continue improving their conditions, describing the regular payment of monthly pensions as a positive step.

Governor Abiodun, in his keynote address on  the suspicious occasion of Workers Day, promised his administration’s commitment to continued improvement in workers’ welfare, commending the organised labour for maintaining harmonious relationship with the state government. 

While noting the challenges of the current economy, he commended President Bola Ahmed Tinubu for his bold reform policies, which according to him, had started yielding positive results. His words: “In a special way, I wish to commend the President and Commander-in-Chief of the Forces of the Federal Republic of Nigeria, His Excellency, Asiwaju Bola Ahmed Tinubu for his visionary leadership and steadfast commitment to repositioning the economy and motivating the Nigerian labour force for greater productivity and national development.  

“Today, inflation is falling the exchange rate is stable petrol is available and stable food prices are dropping like we have never seen before. The economy has turned the bend, Nigeria is rising again. His administration’s reform-driven policies have been pivotal in enhancing the capacity, welfare, and competitiveness of our workforce, while also reinforcing peace, security, and prosperity across the nation. 

“The strategic investments and substantial resources directed toward workforce development are a clear testament to his dedication to building a stronger, more resilient Nigeria. It is my sincere belief that today’s gathering is organized in the same spirit through which we, as government and workers, are committed in our respective capacities to contribute meaningfully towards sustaining the development of our dear State and securing a brighter future for generations yet unborn.”

The governor pleaded with trade unions to sustain the existing working relationship, which he noted, had turned Ogun State to an industrial destination of choice for investors both local and foreign. He said: “I must express my profound appreciation to the organised labour movement for maintaining the peaceful industrial atmosphere we have enjoyed in Ogun State Public Service since the inception of this administration. Undoubtedly, the dedication and commitment of our workers have not only been the bedrock of our administration’s successes but also the driving force propelling the careful and effective implementation of our policies and programmes for the socio-economic advancement of Ogun State.

“In commemoration of the 2025 Workers’ Day, I salute the understanding, dedication, and professionalism of the entire Ogun State workforce towards the successful realisation of our “Building Our Future Together” agenda. It is true, as the legendary labour leader Walter Reuther once said, “There is no greater calling than to serve your fellow men. There is no greater contribution than to help the weak. There is no greater satisfaction than to have done it well.” Without our workforce — the engine room of government — very little could be achieved. I say a heartfelt thank you.

“I also commend the various Unions and Associations under the umbrella of the Nigeria Labour Congress (NLC), ably led by Comrade Ahmed Ademola Benco, Trade Union Congress (TUC), ably led Comrade Hakeem  Lasisi and Joint Negotiating Council (JNC),Ably led by Comrade  Isa Olude, for their rare display of maturity, dialogue, and perceptiveness in handling labour-related issues, particularly at negotiation tables.

As Ernest Ikoli, one of Nigeria’s pioneering labour advocates, rightly noted, “The strength of the labour movement lies in its unity and dialogue, not in division.” This successful hosting of today’s event is a testament to the enduring comradeship between the government and the labour community. I heartily congratulate the organising committee and all individuals and groups whose contributions made this celebration possible.

“Dear Ogun Workers, as we all know, May Day is a time-honoured tradition commemorating the global struggle for workers’ rights. It speaks to equity, fairness, and the collective journey towards a society where the dignity of labour is not merely spoken about but practiced and protected. As Samuel Gompers, founder of the American Federation of Labor, once stated, “The rights of the workers and the welfare of the community are inseparable.”In Ogun State, the synergy between the workforce and government resonates deeply, and has consistently positioned our State as a beacon of innovation, enterprise, and human capital development. Our cooperation has yielded positive outcomes, placing Ogun State firmly on the path of sustainable socio-economic growth.

With your steadfast cooperation, our Administration has prudently deployed available resources to create a business-friendly environment that has attracted and encouraged both local and foreign investments, thus strengthening our economy.

“As a worker-friendly administration, we have made deliberate efforts to deepen our partnership with the labour movement. We remain committed to improving working conditions and enhancing the welfare of our workforce across the State. 

“We have consistently prioritized the welfare and growth of our productive and high-performing public servants. Several other initiatives have been put in place by government.

These include: i) The Ogun State Government has strengthened the health sector by recruiting medical professionals and converting over 400 locum staff to pensionable positions across all 20 LGAs. ii) Since assuming office in 2019, the administration has cleared pension backlogs and now pays pensions alongside salaries, with no pensioner owed. Gratuity payments from 2012 to 2017 have been settled, and a total of N179.7 billion has been disbursed for pensions and gratuities to both state and LG retirees.iii)

Governor Abiodun listed the initiative the government had put in place to improve the welfare of workers, including Sites and Services Scheme enabling home ownership through mortgage. He added: “To support workers’ welfare, the government launched a Sites and Services Scheme enabling home ownership through mortgage, acquiring 350 hectares at Ijemo/Onisela christened as   “Prince Dapo Abiodun Bureaucrats’ Estate.

“Additionally, the backlog of National Housing Scheme remittances has been cleared, easing access to mortgage loans.IV)Car and motorcycle refurbishing loans were increased, with N1.6 billion disbursed to 12,508 beneficiaries.

The state also provided N8 billion in palliatives to workers and pensioners between July 2023 and March 2024 to cushion fuel price hikes.V)Permanent Secretaries and MD heads are regularly appointed based on merit  to maintain leadership continuity, and funds are consistently allocated for capacity-building programmes. Notably, PSs, GMs and Head of Government Parastatals  were recently trained by NIPSS at the Oba Sikiru Kayode Adetona School of Governance, Olabisi Onabanjo University (OOU), Ago-Iwoye Career progression is supported through regular in-service training, exams, and promotion tests. The formal sector of the National Health Insurance Scheme has also been launched, with government subsidising 50 per cent of the cost—each worker pays only N500 monthly. Will look into the issue of the deduction of N1,500 brought to our attention by the TUC Chairman.

“Let me reassure you that my administration remains unwavering in its commitment to  fulfilling all our promises and improving the welfare of workers in our State. We fully recognize that the wellbeing of the good people of Ogun State is intrinsically tied to the productivity of our workforce. It is our firm belief that if workers are expected to continually give their best in their respective duties and chosen fields, they must be consistently encouraged and supported by their employer.” He therefore charged the workers to reciprocate government’s gestures by joining hand with the administration to achieve its agenda.

“Accordingly, the working class in Ogun State has a vital role to play—not only in helping the Government to revive our challenged economy but also in supporting the provision of infrastructure across both urban and rural areas of the State. 

“I would also like to use the opportunity of the 2025 Workers’ Day to emphasise that we are not oblivious to the realities of  economic challenges currently facing our country. In light of this, we have continually appealed to our workers to remain steadfast and be reliable partners in the successful implementation of this Administration’s Building Our Future Together agenda, even as we navigate the present financial constraints. We will continue to create an enabling environment for investors and investment in line with our vision. 

“Today we have become the toast of investors from all over the world, we have become the investors destination of choice for both indigenous investors and foreign direct investment and the fastest growing economy in Nigeria.

“We will not just sustain this but will improve on it. As we continue to roll out programs that will position our workforce as one of the best in the country, I urge you—particularly our State workers—to make quality service delivery a top priority. You must uphold exemplary discipline and self-reliance as you continue to support the Government in the noble task of building a prosperous and united Ogun State.” the Governor Stated.
Ogbonnikan wrote from Abeokuta, Ogun State.