NLC Meets to Decide on Nationwide Strike as Ultimatum Nears Deadline

The Nigeria Labour Congress (NLC) is set to convene a crucial meeting today, Monday, to determine whether to proceed with its planned nationwide strike as its seven-day ultimatum to the Federal Government draws closer to expiration. The strike notice, which was issued last week, is due to lapse on Thursday, August 28, 2025, and centres on two major demands: the refund of allegedly diverted contributions to the Nigeria Social Insurance Trust Fund (NSITF) and the immediate constitution of a governing board for the National Pension Commission (PenCom).

The labour union has warned that unless these issues are urgently addressed, it will have no choice but to shut down economic activities across the country in protest.

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NECA Backs Labour’s Demands

The Nigeria Employers’ Consultative Association (NECA) has openly declared support for the NLC’s position, noting that the grievances are legitimate and long overdue for resolution. While acknowledging that employers themselves cannot embark on strike action, NECA expressed deep frustration with government inaction.

“Unfortunately, employers cannot go on strike, but we are deeply invested in ensuring that the right thing is done, simply by respecting the Acts,” the group stated. NECA further stressed that the Federal Government’s alleged diversion of funds not only undermines workers’ welfare but also erodes trust in public institutions tasked with safeguarding employees’ contributions.

NSITF Confirms Deductions by Finance Ministry

In a twist that has further fuelled labour’s anger, the management of the Nigeria Social Insurance Trust Fund (NSITF) has admitted that half of workers’ contributions under the Employees’ Compensation Scheme (ECS) were indeed deducted by the Federal Ministry of Finance.

The Managing Director of NSITF, Oluwaseun Faleye, confirmed the development in a letter dated August 16, 2025, addressed to NLC President Joe Ajaero. He explained that the deductions stemmed from a Ministry of Finance circular issued on December 28, 2023.

According to Faleye:

“You will recall that the Federal Ministry of Finance circular (Ref: FMFCME/OTHERS/IGR/CFR/21/2021) introduced a policy of automatic deduction of 50% from the internally generated revenue of all Federal Government-owned enterprises. The Fund has consistently engaged with the Ministry of Finance, the Budget Office of the Federation, the Office of the Accountant-General of the Federation, and the Fiscal Responsibility Commission, arguing that the circular overlooked the peculiarities of the Employees’ Compensation Act 2010. Within the context of our mandate and obligations to subscribers under the law, such collections should be treated as liabilities rather than revenues.”

Faleye disclosed that although a portion of the diverted funds had since been refunded, efforts were still ongoing to recover the outstanding balance.

Labour Reviews Developments

The National Administrative Council (NAC) of the NLC, made up of elected national officers and secretariat staff, will be the decision-making body meeting today to evaluate these developments and chart the next course of action.

An NLC official told Vanguard on Sunday that the union was carefully reviewing the government’s response and weighing whether it was sufficient to warrant suspending the ultimatum.

“Yes, members of NAC are meeting on Monday (today) to review developments since the seven-day ultimatum was issued last Thursday. We have acknowledged the NSITF managing director’s letter admitting the deductions, noting that some refunds have been made, while discussions continue to recover the balance,” the official explained.

The labour leader also confirmed that the NLC had noted the appointment of a new PenCom Board Chairman, a move seen as a partial concession to workers’ demands. “Monday’s NAC meeting will review all these issues to decide whether they are enough to suspend the ultimatum or not. That is essentially why NAC is meeting,” he added.

What Is at Stake

The issues at hand strike at the heart of workers’ financial security and the credibility of government institutions. The Employees’ Compensation Scheme, administered by NSITF, is designed to provide compensation to employees who suffer workplace injuries or occupational diseases. Any diversion of funds from this scheme directly undermines the welfare and safety net of Nigerian workers.

Similarly, the constitution of a board for PenCom is vital for the effective regulation and management of pension funds, which millions of Nigerian workers depend on for retirement. The absence of such a board has raised serious concerns about accountability, transparency, and the long-term sustainability of pension assets.

For the NLC, these issues are non-negotiable. The union argues that without full compliance with existing laws, Nigerian workers will continue to face insecurity in their welfare and retirement benefits.

Possible Outcomes

As the NAC meets today, three possible scenarios could emerge:

1. Full Strike Declaration: If the council finds government concessions inadequate, the NLC may instruct all its affiliates to commence a nationwide strike beginning August 29.
2. Suspension of Strike Threat: If the refund process shows significant progress and the PenCom board is fully constituted, the union may suspend the ultimatum pending further monitoring.
3. Extension of Ultimatum: The NLC could extend the deadline by a few days to allow the government more time to act in good faith.

Whatever decision is reached, it will have far-reaching consequences for both the workforce and the national economy. A nationwide strike could paralyse key sectors, from transport to healthcare, education, and public services, deepening the country’s economic woes.

As the NLC leadership meets today to review its ultimatum, the Federal Government finds itself under immense pressure to prevent an industrial crisis. The admission by NSITF that workers’ contributions were indeed deducted—albeit under a Finance Ministry directive—has validated labour’s claims and strengthened its resolve.

With the clock ticking toward the August 28 deadline, the government must either make concrete commitments to refund the remaining funds and fully constitute the PenCom board or face the prospect of a nationwide strike that could cripple economic activities.

For Nigerian workers, the stakes could not be higher. At the heart of the looming showdown is the fundamental demand for fairness, transparency, and respect for laws designed to protect their welfare.