The Nigerian labor landscape witnessed a significant development in late August 2025 as the Federal Government and the Nigeria Labour Congress (NLC) reached a resolution concerning workers’ pension funds. The resolution, brokered by the National Pension Commission (PENCOM), followed weeks of escalating tensions and a seven-day ultimatum issued by the NLC, threatening a nationwide strike. The crux of the dispute centered on several key issues: the delayed constitution of PENCOM’s governing board, allegations of diverted worker funds from the Nigeria Social Insurance Trust Fund (NSITF), and demands for greater transparency and accountability in the management of pension funds. The resolution marked a turning point in the relationship between the NLC and PENCOM, promising a new era of collaboration and open communication.
The NLC, Nigeria’s largest labor organization, had expressed deep concerns about the lack of a statutory board overseeing PENCOM’s operations. This absence of a governing body, coupled with alleged diversion of funds from the NSITF, fueled anxieties among workers regarding the security and proper management of their retirement savings. The NLC’s ultimatum demanded immediate action from the government to address these issues, highlighting the importance of worker representation and oversight in the administration of pension funds. They also emphasized the struggles faced by retirees and those approaching retirement in accessing their benefits, urging PENCOM to strengthen its oversight of Pension Fund Administrators (PFAs) and ensure strict compliance with regulations.
The meeting between the NLC and PENCOM, led by the newly appointed Director-General, Omolola Oloworaran, served as a platform for open dialogue and reconciliation. Oloworaran acknowledged the validity of the NLC’s concerns and apologized for past communication breakdowns, particularly the practice of airing disagreements through the media. She pledged to foster a new era of transparency and collaboration, promising regular reports to the NLC and the establishment of a structured framework for ongoing dialogue. This commitment signified a shift towards a more proactive and inclusive approach to pension administration.
A key element of the resolution involved PENCOM’s commitment to enhanced transparency. Oloworaran announced the development of a public dashboard providing real-time updates on pension matters, empowering workers with access to vital information about their retirement savings. This initiative, coupled with the promise of regular reports to the NLC, aims to build trust and confidence in the pension system. The commitment to transparency extended to a collaborative approach to compliance and enforcement, with both PENCOM and the NLC pledging to work together to protect workers’ contributions and ensure the financial stability of the pension system.
Beyond the immediate resolution, the agreement between the NLC and PENCOM carries broader implications for Nigeria’s pension landscape. The renewed focus on transparency and accountability could encourage greater participation in the pension scheme, particularly among states that have yet to fully embrace the system. Currently, only about 40 percent of Nigerian states have signed on to the scheme, highlighting the potential for expansion and improved retirement security for a larger segment of the workforce. The collaborative approach adopted by PENCOM and the NLC sets a precedent for future engagement and could serve as a model for addressing other labor-related issues.
The resolution also addressed the concerns surrounding the NSITF, which had been criticized by the NLC for a lack of transparency similar to the issues raised with PENCOM. The NLC had accused the government of diverting 40 percent of funds from the Employees’ Compensation Scheme, managed by the NSITF, into the Treasury. This alleged diversion raised concerns about the scheme’s ability to protect employees in cases of work-related injury, illness, or death. While the NSITF acknowledged deductions, they attributed them to a Ministry of Finance directive requiring state-owned enterprises to remit a portion of their internally generated revenue. The Federal Government’s subsequent promise to reverse these deductions signaled a commitment to addressing the NLC’s concerns and restoring confidence in the NSITF’s ability to fulfill its mandate. The resolution signifies a significant step towards strengthening the Nigerian pension system and building a more secure retirement future for Nigerian workers.
