Pension funds: Strike countdown begins as PenCom, Labour disagree
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 The PUNCH 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.”
