Pension Funds Crisis: NLC Gives FG Seven Days to Reverse Alleged ₦ Billions Diversion as Strike Looms
The Nigeria Labour Congress (NLC) has issued a seven-day ultimatum to the Federal Government over what it claims is the diversion of 40% of workers’ insurance contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury.
In a communiqué released on Thursday, NLC President Joe Ajaero accused the government of violating the statutes establishing the NSITF by treating pension funds as revenue. The union warned that failure to refund the alleged diverted billions and address governance lapses in the pension sector would trigger a nationwide strike.
NLC’s Demands
The labour union outlined two key demands to be met within seven working days:
- Full Refund of all allegedly diverted NSITF contributions.
- Immediate Constitution of the Governing Board of the National Pension Commission (PenCom) and publication of a full pension funds status report.
The communiqué stressed:
“Pension funds are deferred wages, not government revenue. Any further interference will meet with decisive industrial action.”
PenCom’s Response
The National Pension Commission (PenCom) pushed back against the allegations, insisting that the Contributory Pension Scheme (CPS) remains secure and continues to grow through regular contributions and profitable investments.
PenCom’s Head of Corporate Communications, Ibrahim Buwal, stated:
“Nobody’s money is missing. The safety of pension funds is confirmed by consistent asset growth. Contributors also receive monthly or quarterly RSA statements.”
On the leadership vacuum at PenCom, Buwal clarified that appointing a governing board is the Federal Government’s responsibility, not the regulator’s.
NECA Backs NLC on Governance Demand
The Nigeria Employers’ Consultative Association (NECA) also urged the government to reconstitute PenCom’s board in compliance with the Pension Reform Act.
NECA DG Adewale-Smatt Oyerinde said:
“The board is necessary because workers and employers are the only contributors. If stakeholders have demanded it, we expect the president to act.”
NSITF Yet to Respond
The NSITF has not issued an official statement on the allegations or the strike notice. Manager of Actuaries, Emmanuel Ulayi, told reporters, “No official response yet.” Corporate Affairs Head, Alexandra Mede, confirmed via text that she is currently hospitalised.
Broader Labour Disputes
This confrontation comes amid multiple pension-related disputes:
- In Ogun State, unions in July gave officials 72 hours to halt a planned contributory pension rollout over ₦82 billion in unpaid arrears.
- The NLC also dissolved the leadership of its Edo State Council for anti-union conduct and appointed a caretaker committee.
The Congress further criticised government policies for worsening inflation, unemployment, hunger, and insecurity, while accusing authorities of covert attempts to amend the NSITF Act to take control of workers’ funds.
Key Things About The Strike Issue
- Alleged Diversion: 40% of NSITF contributions to FG coffers.
- NLC’s Ultimatum: Refund + PenCom board constitution within 7 days.
- Possible Action: Nationwide strike and protests.
- PenCom’s Position: Pension funds secure, no money missing.
- NSITF Status: No official response.
