The Nigeria Labour Congress (NLC) has issued a seven-day ultimatum to the Federal Government, demanding the return of what it claims are billions of naira diverted from workers’ insurance funds. The union also insists that the leadership vacuum at the National Pension Commission (PenCom) be filled immediately.
In a communiqué signed by NLC President Joe Ajero, the union accused the government of diverting 40% of contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury a move it described as a “flagrant violation” of the law establishing the fund. The NSITF, funded by payroll deductions from millions of Nigerian workers, is designed to provide financial protection in cases of workplace injury or job loss.
“Pension funds are deferred wages, not government revenue,” the NLC stated, warning that any further interference would trigger industrial action.
The union also condemned the continued absence of a governing board at PenCom, warning that leaving sole control of pension funds in the hands of the administration exposes the sector to mismanagement and political influence.
The face-off comes amid ongoing disputes over pension management nationwide. In July, labour unions in Ogun State opposed the rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over ₦82 billion.
The NLC’s ultimatum demands that the NSITF refund all allegedly diverted funds and that PenCom submit a full report on the status of pension assets while constituting its Governing Board — all within seven working days. Failure to comply, the Congress warned, could lead to nationwide strikes and protests.
PenCom and NECA Respond
Reacting to the claims, PenCom’s Head of Corporate Communications, Ibrahim Buwal, said the appointment of a board is solely the responsibility of the Federal Government. He insisted that pension assets under the Contributory Pension Scheme remain safe and continue to grow through regular contributions and profitable investments.
The Nigeria Employers’ Consultative Association (NECA) also called on the government to reconstitute PenCom’s board in line with the Pension Reform Act. NECA Director-General Adewale-Smatt Oyerinde stressed that workers and employers — as the only contributors — must have a say in pension governance.
The NSITF has not issued an official response to the allegations or the ultimatum. Officials contacted by reporters either declined comment or were unavailable.
Other NLC Actions
At the same meeting, the NLC dissolved the leadership of its Edo State Council over alleged unethical conduct, appointing a caretaker committee to oversee fresh elections.
The union also criticised government policies it said have worsened inflation, unemployment, hunger, insecurity, and the collapse of public services. It accused the administration of attempting to take control of the NSITF through proposed legal amendments and of falsely claiming ownership of the NLC National Headquarters, which it says was purchased with workers’ contributions.
“This represents a direct attack on workers’ rights and hard-earned resources,” the communiqué read. “The NSITF belongs solely to the Nigerian working class, and we will use all legitimate means to defend it.”
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