The long-running tension between the Federal Government and the Nigeria Labour Congress (NLC) over pension funds has finally been resolved, following a high-level meeting with the National Pension Commission (PENCOM) in Abuja on August 29, 2025.
The dialogue, which was chaired by PENCOM’s Director-General, Mrs. Omolola Oloworaran, marked her first official engagement with the Congress since assuming office in July 2024.
It also signalled a major breakthrough in the standoff that had threatened to trigger nationwide industrial action.
The NLC, Nigeria’s largest labour union, had consistently accused PENCOM and the Federal Government of neglecting workers’ welfare, citing missing funds, poor oversight, and the absence of a statutory governing board.
On August 13, the union issued a seven-day ultimatum demanding:
Immediate inauguration of PENCOM’s governing board.
Recovery of allegedly diverted funds from the Nigeria Social Insurance Trust Fund (NSITF).
A comprehensive status report on the nation’s pension assets.
Failure to meet these demands, the NLC warned, would have led to a paralyzing strike across multiple sectors of the economy.
PENCOM, however, firmly denied any mismanagement, reiterating that pension funds remained safe and well-accounted for.
Its acting spokesman, Ibrahim Buwai, stressed that the appointment of a governing board was solely a Federal Government responsibility.
At the meeting, NLC President Joe Ajaero reiterated that Nigerian workers must be assured of transparency in the handling of their retirement savings.
He highlighted persistent complaints from retirees and near-retirees over delayed access to benefits, calling for stricter regulation of Pension Fund Administrators (PFAs).
“Pension funds are the exclusive property of Nigerian workers and must be managed with the highest level of accountability,” Ajaero insisted.
He also underscored the urgency of addressing workers’ distrust, particularly in light of reports of deductions from the NSITF’s Employee Compensation Scheme.
In a reconciliatory move, DG Oloworaran apologised for PENCOM’s lack of early engagement with the NLC, describing it as a missed opportunity to build trust.
She promised a new era of cooperation built on transparency, regular dialogue, and structured reporting.
Among the reforms announced were:
A public pension dashboard to provide real-time updates on fund performance and disbursements.
Regular reports to be shared directly with the NLC.
Clear frameworks for sustained collaboration on compliance and enforcement.
She also emphasized the critical role of labour representatives on PENCOM’s board and invited the NLC to play a stronger oversight role in protecting workers’ contributions.
The resolution comes at a crucial time for Nigeria’s pension sector, which has grown into one of Africa’s largest with over N18 trillion in assets under management.
However, participation remains uneven: only about 40% of states have fully adopted the contributory pension scheme.
Analysts believe this agreement could encourage more states to comply, thereby expanding coverage to millions of workers still outside the formal system.
Additionally, the controversy around NSITF highlights broader issues of government financing and transparency.
In August, NSITF’s Managing Director, Oluwaseun Faleye, admitted that deductions had been made from workers’ funds but attributed them to a Ministry of Finance directive requiring state-owned enterprises to remit half of their internally generated revenue.
The Federal Government has since pledged to reverse the policy to calm tensions.
For many Nigerians, pension reforms are not just a technical matter—they are central to social stability.
With inflation eroding household income and retirees struggling to access their savings, mistrust in the system had been growing.
The new agreement between PENCOM and the NLC, therefore, represents more than a settlement of disputes; it is a renewed promise to protect the financial future of millions of workers.
Labour experts argue that if properly implemented, the reforms could restore confidence, boost pension enrolment, and even attract more investments into Nigeria’s capital markets, where pension funds are significant players.
The parties ended the meeting with a joint communiqué reaffirming their commitment to:
Safeguarding workers’ pension contributions.
Promoting transparency and accountability.
Expanding pension scheme participation nationwide.
Building sustainable dialogue rather than confrontations.
With this resolution, the threat of industrial unrest appears to have been averted, but stakeholders stress that sustained implementation will determine the long-term credibility of Nigeria’s pension system.
As the NLC and PENCOM turn the page, workers and retirees alike will be watching closely to see whether the promises of reform translate into real improvements in pension administration and timely access to benefits.