President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has expressed serious concern over the federal government’s persistent failure to reconstitute the board of the National Pension Commission (PenCom), warning that the continued absence of a governing board undermines transparency, accountability, and effective oversight in the management of workers’ retirement savings.
Speaking at the Annual General Meeting of TrustFund Pensions Limited held in Abuja, Ajaero lamented that PenCom has operated without a properly constituted board for nearly four years, in defiance of legal provisions that mandate the inclusion of institutional representatives from both labour unions and employers.
“The PenCom board is legally required to include representatives from organized labour and employers, since the pension fund is made up of contributions from both parties,” Ajaero stated.
“For several years now, this board has not been inaugurated, yet decisions continue to be made without full representation. That raises serious questions about transparency and accountability in the system.”
Ajaero also addressed other pressing issues plaguing the pension sector, including the persistent delays in the disbursement of retirement benefits. He noted that despite faithfully contributing throughout their working lives, many Nigerian retirees continue to face extended wait times and unfulfilled entitlements, leaving them in financial distress during retirement.
In addition, the NLC president raised concerns about the opaque handling of revenue generated from workers’ compensation funds. He emphasized the urgent need for enhanced oversight and stricter accountability mechanisms to ensure these social security contributions are utilized for their intended purpose.
Broadening the discussion to include wider economic challenges, Ajaero highlighted the declining value of workers’ wages and pensions due to inflation, rising utility tariffs, and increasing fuel prices.
“Even if minimum wage is increased to ₦70,000 or more, it still cannot meet the basic needs of Nigerian workers in an economy plagued by inflation and currency depreciation,” he said. “The federal government must take decisive steps to stabilize the naira and address the root causes of economic hardship.”
Also speaking at the event, the Managing Director and Chief Executive Officer of TrustFund Pensions, Mr. Uche Ihechere, reported that the company achieved significant financial growth in 2024, including a 20 percent increase in assets under management and a 34 percent rise in profit before tax. He attributed this performance to prudent management practices and strategic investment decisions.
Ihechere commended the federal government’s recent proposal to issue a ₦700 billion bond to clear pension arrears, describing the initiative as a timely intervention and a demonstration of renewed commitment to the welfare of retirees.
However, he noted that inflation continues to erode real investment returns within the pension industry and urged the development of sustainable, infrastructure-based investment avenues that can generate higher yields for contributors.
Other stakeholders present at the meeting echoed these sentiments, stressing the urgent need for comprehensive pension sector reforms. Key recommendations included strengthening regulatory oversight, streamlining the payment process, and ensuring timely and complete disbursement of benefits to contributors and retirees.
The event underscored a collective call to action among labour leaders, pension fund managers, and government representatives to restore trust in the pension system and secure a dignified retirement for Nigerian workers.