The Nigeria Labour Congress (NLC) has given the Federal Government just seven days to return what it describes as billions of naira allegedly siphoned from workers’ social insurance contributions, warning that failure to comply will trigger a crippling nationwide strike.
In a communiqué released on Thursday, NLC President Joe Ajero accused the government of illegally diverting 40 per cent of funds from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury. The fund, financed through payroll deductions from millions of workers, is intended to serve as a financial safety net in cases of workplace injury or sudden job loss. Ajero condemned the move as a “flagrant violation” of the laws establishing the NSITF, declaring that pension and insurance contributions are “deferred wages, not government revenue.”
The labour body also blasted the government for failing to appoint a governing board for the National Pension Commission (PenCom), claiming the leadership vacuum has left billions in retirement savings vulnerable to political interference and mismanagement. It demanded the immediate reconstitution of the board and a full public report on the status of pension funds within the same one-week deadline.
This latest confrontation adds to a growing wave of pension-related disputes nationwide. In July, labour unions in Ogun State issued a 72-hour ultimatum over a planned contributory pension scheme, citing a staggering 17-year backlog of unpaid contributions worth more than ₦82 billion. The NLC says these unresolved issues are fueling mistrust and threatening the future security of millions of Nigerian workers.
PenCom, however, has denied any wrongdoing. Ibrahim Buwal, Head of Corporate Communications, insisted that no pension assets are missing and that funds under the Contributory Pension Scheme remain “safe, secure, and consistently growing” due to regular contributions and profitable investments. He stressed that contributors receive regular statements of their Retirement Savings Accounts and maintained that the commission is not responsible for appointing its board, which is solely the prerogative of the Federal Government.
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The Nigeria Employers’ Consultative Association (NECA) also weighed in, urging the government to obey the Pension Reform Act by immediately constituting the PenCom board. NECA Director-General Adewale-Smatt Oyerinde emphasised that employers and workers are the only stakeholders in the pension system, and their joint call for action must be respected.
For now, the NSITF remains silent on the allegations, with officials saying no official response has been prepared.
The NLC’s outrage extended beyond pensions. It ratified the dissolution of its Edo State Council leadership over alleged unethical behaviour and anti-union conduct, appointed a caretaker committee, and accused the government of worsening inflation, unemployment, insecurity, and the collapse of public services through anti-people policies. Ajero further alleged that the administration has attempted to intimidate unions, falsely claimed ownership of the NLC headquarters, and is secretly seeking to amend the NSITF Act to take full control of workers’ funds.
With the ultimatum clock now ticking, the NLC’s message is clear: if the Federal Government does not reverse the alleged diversion and restore lawful governance to the pension sector within seven days, Nigeria could face a paralyzing wave of strikes and protests that will shut down economic activities nationwide.
