PENCOM Rejects NLC Claims of Pension Fund Mismanagement, Insists Pension Assets Secure
Nigeria’s National Pension Commission (PENCOM) has publicly dismissed recent allegations by the Nigeria Labour Congress (NLC) regarding the mismanagement and diversion of workers’ pension funds. According to PENCOM’s Head of Corporate Communications, Ibrahim Buwal, there are no missing funds under the Contributory Pension Scheme (CPS), and “pension assets remain secure and continue to grow.”Bizwatch Nigeriadailymailngr.com
The NLC had earlier issued a seven-day ultimatum to the Federal Government, demanding a refund of what it described as billions of naira allegedly diverted from the Nigeria Social Insurance Trust Fund (NSITF). Notably, they accused the government of transferring 40% of workers’ contributions into the national treasury, calling it a violation of the NSITF Act and an assault on workers’ social protection rights. They also criticized the prolonged absence of a duly constituted governing board for PENCOM, arguing that its non-constitution has stripped workers and employers of their statutory oversight roles.Business News NigeriaBusinessday NGdemocracyradio.ng
In a strong rebuttal, PENCOM reiterated that pension funds are not government revenue. Buwal maintained that the CPS remains robust and well-managed. According to him, the appointment of the PENCOM board is a matter for the Federal Government—not the regulator itself.Bizwatch NigeriaPicNews.com.ng
The Nigeria Employers’ Consultative Association (NECA) has publicly backed the NLC’s demand for the constitution of the PENCOM board, emphasizing that workers and employers, who finance the pension scheme, deserve representation. They labeled the delay as a clear breach of the Pension Reform Act.Bizwatch NigeriaPicNews.com.ng
Amid these growing tensions, the NSITF has remained largely silent. While the NLC demanded immediate restitution and transparency, representatives from the fund cited constraints, with one official stating that the Head of Corporate Affairs was unavailable due to illness.dailymailngr.comBizwatch Nigeria
This conflict unfolds against a backdrop of rising public discontent. The NLC’s ultimatum was also tied to broader governance concerns—such as attempts to amend the NSITF Act in ways that could disenfranchise workers and grant full control over pension funds to the government. Such moves, the union argued, defy international labour standards and undercut worker protections.democracyradio.ngBusinessday NG
PENCOM’s historical context underscores the weight of these concerns. Since the adoption of the Contributory Pension Scheme under the 2004 Pensions Act, PENCOM has overseen assets that have grown significantly; reportedly from N7.5 trillion in 2017 to over N13 trillion by early 2022, serving as a pillar of retirement security for millions of Nigerians.Wikipedia
As the seven-day deadline approaches, the Federal Government’s response will be closely watched. Should the board be constituted and funds transparently accounted for, the crisis may de-escalate. However, unresolved, it risks igniting nationwide industrial unrest, potentially jeopardizing “industrial peace” across Nigeria’s labour sector.democracyradio.ngBusinessday NG
