Pension funds: Strike countdown begins as PenCom, Labour disagree.
PenCom reacts, NSITF silent as Labour issues seven-day strike notice over alleged 40% pension fund diversion
The Nigeria Labour Congress has threatened a nationwide strike if the Federal Government fails to return what it claims to be billions of naira taken from workers’ insurance contributions. It also demanded that the government fill the leadership gap in the country’s pension regulatory commission within a week.
The NLC accused the Federal Government of syphoning 40 per cent of contributions from the Nigeria Social Insurance Trust Fund into the national treasury. The fund, which is financed by payroll deductions from millions of workers, is meant to protect them in the event of injury or job loss.
However, the National Pension Commission argued that the Contributory Pension Scheme remains secure and continues to grow, as it kicked against claims of missing funds.
“The (NLC) Central Working Committee expressed outrage at the ongoing assault on workers’ social protection rights through the Federal Government’s diversion of 40 per cent of workers’ contributions to the national coffers as revenue, in flagrant violation of the statutes establishing the NSITF,” NLC President Joe Ajero said in a communique shared on Thursday.
The union noted the move violated the laws establishing the NSITF and stripped it of its role as a safety net. “Pension funds are deferred wages, not government revenue,” Labour stated, warning that any further interference would trigger industrial action.
The group also criticised the government’s failure to appoint a governing board for the National Pension Commission, leaving the administration in sole control of billions in retirement savings. The union said the vacuum created heightened risks of mismanagement and political interference in the pension sector.
The standoff comes amid broader disputes over pension management across the country. In July, a coalition of labour unions in Ogun State gave state officials 72 hours to halt the planned rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over N82bn. They called for a return to the old pension system or a delay until the arrears are cleared.
PenCom reacts, NSITF silent as Labour issues seven-day strike notice over alleged 40% pension fund diversion
The Nigeria Labour Congress has threatened a nationwide strike if the Federal Government fails to return what it claims to be billions of naira taken from workers’ insurance contributions. It also demanded that the government fill the leadership gap in the country’s pension regulatory commission within a week.
The NLC accused the Federal Government of syphoning 40 per cent of contributions from the Nigeria Social Insurance Trust Fund into the national treasury. The fund, which is financed by payroll deductions from millions of workers, is meant to protect them in the event of injury or job loss.
However, the National Pension Commission argued that the Contributory Pension Scheme remains secure and continues to grow, as it kicked against claims of missing funds.
“The (NLC) Central Working Committee expressed outrage at the ongoing assault on workers’ social protection rights through the Federal Government’s diversion of 40 per cent of workers’ contributions to the national coffers as revenue, in flagrant violation of the statutes establishing the NSITF,” NLC President Joe Ajero said in a communique shared on Thursday.
The union noted the move violated the laws establishing the NSITF and stripped it of its role as a safety net. “Pension funds are deferred wages, not government revenue,” Labour stated, warning that any further interference would trigger industrial action.
The group also criticised the government’s failure to appoint a governing board for the National Pension Commission, leaving the administration in sole control of billions in retirement savings. The union said the vacuum created heightened risks of mismanagement and political interference in the pension sector.
The standoff comes amid broader disputes over pension management across the country. In July, a coalition of labour unions in Ogun State gave state officials 72 hours to halt the planned rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over N82bn. They called for a return to the old pension system or a delay until the arrears are cleared.
Pension funds: Strike countdown begins as PenCom, Labour disagree.
PenCom reacts, NSITF silent as Labour issues seven-day strike notice over alleged 40% pension fund diversion
The Nigeria Labour Congress has threatened a nationwide strike if the Federal Government fails to return what it claims to be billions of naira taken from workers’ insurance contributions. It also demanded that the government fill the leadership gap in the country’s pension regulatory commission within a week.
The NLC accused the Federal Government of syphoning 40 per cent of contributions from the Nigeria Social Insurance Trust Fund into the national treasury. The fund, which is financed by payroll deductions from millions of workers, is meant to protect them in the event of injury or job loss.
However, the National Pension Commission argued that the Contributory Pension Scheme remains secure and continues to grow, as it kicked against claims of missing funds.
“The (NLC) Central Working Committee expressed outrage at the ongoing assault on workers’ social protection rights through the Federal Government’s diversion of 40 per cent of workers’ contributions to the national coffers as revenue, in flagrant violation of the statutes establishing the NSITF,” NLC President Joe Ajero said in a communique shared on Thursday.
The union noted the move violated the laws establishing the NSITF and stripped it of its role as a safety net. “Pension funds are deferred wages, not government revenue,” Labour stated, warning that any further interference would trigger industrial action.
The group also criticised the government’s failure to appoint a governing board for the National Pension Commission, leaving the administration in sole control of billions in retirement savings. The union said the vacuum created heightened risks of mismanagement and political interference in the pension sector.
The standoff comes amid broader disputes over pension management across the country. In July, a coalition of labour unions in Ogun State gave state officials 72 hours to halt the planned rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over N82bn. They called for a return to the old pension system or a delay until the arrears are cleared.
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