NLC Threatens Nationwide Strike Over Alleged 40% Diversion of Pension Funds

The Nigeria Labour Congress (NLC) has issued a seven-day ultimatum to the Federal Government over what it describes as the unlawful diversion of workers’ insurance contributions and the failure to appoint a governing board for the National Pension Commission (PenCom). The Congress warned that failure to meet its demands could trigger a nationwide strike and mass protests.

In a communique released on Thursday, NLC President Joe Ajero accused the Federal Government of siphoning 40 per cent of contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury as revenue. The fund, financed by payroll deductions from millions of workers, is meant to serve as a safety net in the event of workplace injury, disability, or job loss.

Ajero described the diversion as a violation of the statutes establishing the NSITF and an “assault on workers’ social protection rights.” He stressed that pension funds are deferred wages and not government revenue, warning that any further interference could lead to immediate industrial action.

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Leadership Vacuum in PenCom

The NLC also condemned the government’s failure to constitute a governing board for PenCom, leaving the agency under sole executive control of billions of naira in retirement savings. The Congress said this leadership gap heightened the risk of mismanagement and political interference in the pension sector.

The ultimatum demands that all allegedly diverted funds be refunded within seven working days and that PenCom submit a comprehensive status report on pension assets. It also calls for the immediate constitution of the PenCom board in line with the Pension Reform Act.

Wider Disputes Over Pension Management

The pension sector has been facing multiple disputes in recent months. In July, a coalition of labour unions in Ogun State issued a 72-hour notice to halt the planned rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over ₦82 billion. They demanded either a return to the old pension model or a delay in implementation until arrears were settled.

Labour leaders argue that without transparency, adherence to the law, and effective governance structures, workers’ savings remain at risk of political manipulation.

PenCom, NECA Respond

Reacting to the NLC’s allegations, PenCom’s Head of Corporate Communications, Ibrahim Buwal, said the appointment of a governing board is strictly a Federal Government responsibility, not the regulator’s. He added that the commission is reviewing the NLC’s communique.

On the security of pension assets, Buwal assured contributors that their funds under the Contributory Pension Scheme (CPS) remain intact and are growing. “The safety of pension funds is confirmed by the consistent growth and accumulation of assets through regular contributions and profitable investments. Nobody’s money is missing,” he stated.

The Nigeria Employers’ Consultative Association (NECA) also weighed in, urging the government to reconstitute PenCom’s board without delay. NECA Director-General Adewale-Smatt Oyerinde, said failing to do so violates the Pension Reform Act.

“There are only two stakeholders in the pension industry — the employers and the workers — and both are calling for the board’s constitution. We trust the president will act,” Oyerinde said.

NSITF Yet to Comment

While the allegations centre on the NSITF, the agency has not issued an official response. Emmanuel Ulayi, Manager of Actuaries, Planning, and Research at the Fund, told reporters there was “no official response yet” to the NLC ultimatum. Efforts to reach the Head of Corporate Affairs, Alexandra Mede, were unsuccessful, though she confirmed via text that she was hospitalised.

Additional Resolutions and National Concerns

The NLC’s meeting also ratified the dissolution of the Edo State Council leadership for alleged unethical conduct, anti-union activities, and violations of the NLC Constitution. A caretaker committee will oversee the council’s affairs until new elections are held.

Reviewing the broader national situation, the Congress condemned government policies it said have worsened inflation, unemployment, hunger, insecurity, and the collapse of public services. The NLC called for a people-centred development model anchored on public ownership of strategic industries, payment of living wages, industrial revitalisation, and stronger social protection systems.

The union also denounced what it described as false government claims of ownership over the NLC National Headquarters, asserting that the building was purchased with workers’ contributions. Ajero further accused the government of engaging in cyber and media intimidation of trade unions, while covertly seeking to amend the NSITF Act to take full control of the Fund.

“This represents a direct attack on workers’ rights, hard-earned resources, and the principle of tripartite governance enshrined in international labour standards,” the communique read. The NLC warned that the NSITF belongs solely to the Nigerian working class and vowed to use all legitimate means to safeguard workers’ interests.

Strike Threat Looms

With the seven-day deadline counting down, tensions between the government and organised labour remain high. If the government fails to meet the NLC’s demands — refunding the allegedly diverted funds, constituting the PenCom board, and providing transparency in pension management — the country could see another round of disruptive industrial action.

Given the union’s influence and its ability to mobilise across all sectors, a nationwide strike could bring economic activity to a standstill and further strain relations between the Tinubu administration and organised labour.