…Union issues seven-day ultimatum over alleged 40% pension fund diversion; NSITF silent
The Nigeria Labour Congress (NLC) has issued a seven-day ultimatum to the Federal Government, threatening a nationwide strike over what it described as the unlawful diversion of 40 per cent of workers’ contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury.
The union is also demanding the immediate constitution of a governing board for the National Pension Commission (PenCom), warning that failure to meet its demands will trigger industrial action.
NLC President, Joe Ajaero, in a communiqué on Thursday, accused the government of violating the statutes establishing the NSITF, which was created as a safety net for workers in cases of injury, job loss, or other emergencies.
“Pension funds are deferred wages, not government revenue,” Ajaero said, alleging that the diversion amounted to “an assault on workers’ social protection rights.”
The union warned that the leadership vacuum at PenCom increases the risk of mismanagement and political interference in the pension sector, where billions of naira in retirement savings are at stake.
PenCom, NECA Respond
Reacting, PenCom’s Head of Corporate Communications, Ibrahim Buwal, said the appointment of a governing board is a Federal Government prerogative, not that of the regulator. He dismissed claims of missing funds, insisting that assets under the Contributory Pension Scheme (CPS) “remain secure and continue to grow” through regular contributions and profitable investments.
The Nigeria Employers’ Consultative Association (NECA) backed the NLC’s demand for a PenCom board, describing the delay as a violation of the Pension Reform Act. NECA Director-General, Adewale-Smatt Oyerinde, urged the government to act swiftly, noting that employers and workers are the only contributors to the pension scheme and therefore key stakeholders.
NSITF Maintains Silence
The NSITF has yet to issue an official response. Manager of Actuaries, Planning and Research, Emmanuel Ulayi, confirmed this to our correspondent, while the Fund’s Head of Corporate Affairs, Alexandra Mede, said via text that she was hospitalised.
Broader Labour Discontent
The NLC also ratified the dissolution of its Edo State Council over alleged unethical conduct and anti-union activities, appointing a caretaker committee to oversee the branch.
In its wider review of national affairs, the Congress accused the government of implementing policies that have worsened inflation, unemployment, hunger, and insecurity, and eroded public services. It called for a people-centred development model anchored on living wages, industrial revival, and strong social protection systems.
The communiqué further alleged attempts by the administration to amend the NSITF Act for full government control of workers’ funds, describing this as “a direct attack on workers’ rights” and vowing to use all legitimate means to resist it.
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