The Nigeria Labour Congress (NLC) has issued a stern seven-day ultimatum to the Federal Government over the alleged diversion of 40% of workers’ insurance contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury. The union warned that failure to reverse the move and address leadership gaps in the pension sector could trigger a nationwide strike.
NLC President, Joe Ajaero, in a communiqué released on Thursday, accused the government of violating the statutes establishing the NSITF, which is funded through payroll deductions to provide a safety net for workers in cases of workplace injury or job loss.
“Pension funds are deferred wages, not government revenue,” Ajaero stressed, warning that any further interference would be met with industrial action.
The labour body insists that the NSITF must refund all diverted funds within seven working days. It also demands that the Federal Government constitute a Governing Board for the National Pension Commission (PenCom) and present a full report on the status of pension funds within the same period.
The NLC condemned the absence of a PenCom board, saying the vacuum exposes billions of naira in retirement savings to political interference and mismanagement. The union also alleged that the government is pushing to amend the NSITF Act to gain full control of workers’ funds, describing it as a direct attack on labour rights.
Reacting, PenCom’s Head of Corporate Communications, Ibrahim Buwal, said the appointment of a board is solely the Federal Government’s responsibility. He assured contributors that pension assets under the Contributory Pension Scheme (CPS) remain safe and continue to grow through regular contributions and profitable investments.
“Nobody’s money is missing,” Buwal said, adding that contributors receive periodic statements of their Retirement Savings Accounts.
The Nigeria Employers’ Consultative Association (NECA) backed the NLC’s call for the reconstitution of the PenCom board. NECA Director-General, Adewale-Smatt Oyerinde, emphasised that both workers and employers — the only contributors to pension funds — deserve representation in pension governance.
When contacted, NSITF’s Manager of Actuaries, Planning and Research, Emmanuel Ulayi, said there is no official response yet to the NLC’s ultimatum. The Fund’s Head of Corporate Affairs, Alexandra Mede, could not be reached for further comment.
The crisis is unfolding against a backdrop of broader pension disputes nationwide. In July, labour unions in Ogun State gave the government 72 hours to halt the rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over ₦82 billion.
The NLC also ratified the dissolution of its Edo State Council leadership for alleged anti-union conduct and unethical behaviour, appointing a caretaker committee in its place. Additionally, it criticised government policies that have worsened inflation, joblessness, and the collapse of public services, calling for a people-centred economic model anchored on living wages, industrial revival, and strong social protection systems.
With the seven-day deadline already counting down, the standoff between labour and the government is intensifying. If unresolved, Nigeria could witness another wave of strikes and mass protests, further straining an economy already grappling with high inflation and widespread hardship.
This dispute over pension funds touches directly on the livelihoods of millions of Nigerian workers, and its resolution — or escalation — will likely have far-reaching political and economic consequences in the coming weeks.