- PenCom reacts, NSITF silent as Labour issues seven-day strike notice over alleged 40% pension fund diversion
The Nigeria Labour Congress has threatened a nationwide strike if the Federal Government fails to return what it claims to be billions of naira taken from workers’ insurance contributions.
It also demanded that the government fill the leadership gap in the country’s pension regulatory commission within a week.
The NLC accused the Federal Government of syphoning 40 per cent of contributions from the Nigeria Social Insurance Trust Fund into the national treasury. The fund, which is financed by payroll deductions from millions of workers, is meant to protect them in the event of injury or job loss.
However, the National Pension Commission argued that the Contributory Pension Scheme remains secure and continues to grow, as it kicked against claims of missing funds.
“The (NLC) Central Working Committee expressed outrage at the ongoing assault on workers’ social protection rights through the Federal Government’s diversion of 40 per cent of workers’ contributions to the national coffers as revenue, in flagrant violation of the statutes establishing the NSITF,” NLC President Joe Ajero said in a communique shared on Thursday.
The union noted the move violated the laws establishing the NSITF and stripped it of its role as a safety net. “Pension funds are deferred wages, not government revenue,” Labour stated, warning that any further interference would trigger industrial action.
The group also criticised the government’s failure to appoint a governing board for the National Pension Commission, leaving the administration in sole control of billions in retirement savings. The union said the vacuum created heightened risks of mismanagement and political interference in the pension sector.
The standoff comes amid broader disputes over pension management across the country. In July, a coalition of labour unions in Ogun State gave state officials 72 hours to halt the planned rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over N82bn. They called for a return to the old pension system or a delay until the arrears are cleared.
The communiqué stated that the NSITF must refund all diverted funds within seven working days and that PenCom must submit a full status report of pension funds and have its Governing Board constituted within the same period. It warned that if these demands were not met, the NLC would no longer guarantee industrial peace, signalling the possibility of nationwide strikes and protests.
PenCom, NECA react
Responding to the union’s claims, the Head of the Corporate Communications Department, PenCom, Ibrahim Buwal, told DECENCY GLOBAL NEWS that the appointment of a Governing Board is a matter for the Federal Government rather than the regulator.
“The issue of the board is not an agency issue; it is for the Federal Government, so we are not in a position to comment on that,” he said, adding that the commission is still studying the NLC communiqué.
On the safety of pension assets, he maintained that funds under the Contributory Pension Scheme remain secure and continue to grow. “The safety of pension funds is confirmed by the consistent growth and accumulation of the assets because of regular contributions and profitable investments,” he said.
He noted that contributors receive monthly or quarterly statements of their Retirement Savings Accounts and stressed, “Nobody’s money is missing. I can confirm there are no pension funds under the CPS that are missing.”
The Nigeria Employers’ Consultative Association earlier called on the Federal Government to reconstitute the governing body of PenCom in compliance with the Pension Reform Act.
“That’s what the Act says. Not constituting it is a violation of the Act.
Since this government has shown respect for the due process and rule of law, we expect that the important thing should be done,” the Director-General of NECA, Adewale-Smatt Oyerinde, stated.
“The board should be constituted. It’s necessary; it’s important. There are only two stakeholders in the pension income industry. There are only two. The employers and the workers. Because it’s only the employers and the workers who are contributing. So, NLC and NECA members are the critical stakeholders, the only stakeholders. So if the stakeholders have said they should constitute the board, we trust that the president will do the needful.”
NSITF silent
The Nigeria Social Insurance Trust Fund said there is no official response yet to the seven-day ultimatum issued by the NLC over alleged diversion of workers’ contributions and the non-constitution of the PENCOM board.
Manager of Actuaries, Planning and Research at the Fund, NSITF, Emmanuel Ulayi, disclosed this in a phone call with our correspondent in Abuja. “No official response yet,” he said.
The Head of Corporate Affairs of the Fund, Alexandra Mede, could not be reached. In response to a text message sent to her by our correspondent, she said she was currently hospitalised.
Other issues
The NLC meeting also ratified the dissolution of the Edo State Council’s leadership for what it described as acts of unethical behaviour, anti-union conduct, and violations of the NLC Constitution. A caretaker committee has been appointed to run the council’s affairs until fresh elections are conducted.
Reviewing the broader state of the nation, the NLC criticised government policies it said had worsened runaway inflation, joblessness, hunger, insecurity, and the collapse of public services. The Congress urged the adoption of a people-centred development model anchored on public ownership of strategic sectors, living wages, industrial revival, and robust social protection systems.
Ajero also condemned what it called a false claim of ownership by the administration over the NLC National Headquarters, which it stressed was purchased with workers’ contributions, and alleged the government had engaged in cyber and media intimidation of trade unions while covertly seeking to amend the NSITF Act to gain full control of the funds.
“This represents a direct attack on workers’ rights, hard-earned resources, and the principle of tripartite governance enshrined in international labour standards,” the communiqué read, adding that the NSITF belongs solely to the Nigerian working class and that the NLC would mobilise all legitimate means to protect workers’ interests.
