The Federal Government and the Nigeria Labour Congress have resolved a dispute over workers’ pension funds following a meeting with the National Pension Commission on August 29, 2025.

The meeting, led by PENCOM Director-General Omolola Oloworaran, marked the DG’s first official interaction with the NLC since assuming office in July 2024, the union said in a note shared with The PUNCH on Sunday.

The engagement followed weeks of escalating pressure from the country’s biggest labour organisation. On August 13, 2025, the NLC Central Working Committee issued a seven-day ultimatum to the Federal Government, demanding the immediate constitution of the PENCOM governing board, the return of allegedly diverted workers’ funds from the Nigeria Social Insurance Trust Fund, and a full status report on pension funds. It also warned that failure to meet these demands would trigger a nationwide strike.

The pension regulator rejected the claims of missing funds and assured that workers’ pensions were safe and secure. Earlier, its acting Director of Corporate Communications, Ibrahim Buwai, had told The PUNCH that the appointment of the PENCOM board is a Federal Government prerogative.

“Pension funds are the exclusive property of Nigerian workers and must be managed with utmost transparency and accountability,” NLC President Joe Ajaero said at the meeting.

The labour leader raised concerns over PENCOM functioning without a statutory board, noting that workers have the right to know how their funds are administered.

NLC mentioned the persistent challenges faced by retirees and those nearing retirement in accessing their benefits, urging PENCOM to intensify oversight of Pension Fund Administrators, enforce compliance, and impose sanctions where necessary.

In response, PENCOM DG Omolola Oloworaran called for a new chapter of engagement with the NLC. She apologised for past media disputes and for failing to visit or formally engage with the Congress upon assuming office. The executive pledged a transparent, open, and collaborative approach, promising that PENCOM would no longer address disagreements through the media but would instead establish continuous and structured dialogue with the NLC.

Oloworaran also unveiled plans to enhance public accountability through PENCOM’s dashboard, enabling real-time updates on pension matters. Going forward, PENCOM will be sending regular reports to the NLC and developing a clear framework for sustained engagement, emphasizing the importance of trust, harmony, and transparency.

The DG acknowledged the NLC’s critical role as workers’ representatives on the PENCOM board and called for their continued support to strengthen oversight of PFAs. Both parties agreed to collaborate closely on compliance and enforcement, ensuring the protection of workers’ contributions.

The resolution may also encourage broader participation in the pension scheme, as only about 40 percent of Nigerian states have currently signed on. The NLC and PENCOM concluded the meeting with a shared commitment to safeguarding workers’ pensions, improving transparency, and renewing trust, signalling a new chapter in Nigeria’s pension administration.

Recall that NLC also criticised the Nigeria Social Insurance Trust Fund for a lack of transparency, similar to past concerns with PENCOM. The union accused the government of diverting 40 per cent of funds from the Employees’ Compensation Scheme administered by NSITF into the Treasury, undermining the scheme’s role in protecting employees injured, ill, or deceased at work.

On August 16, 2025, NSITF Managing Director Oluwaseun Faleye confirmed that deductions had been made but denied diversion, explaining that withdrawals followed a Ministry of Finance directive introduced in December 2023 requiring state-owned enterprises to remit half of internally generated revenue. The Federal Government has promised to reverse the deductions, a move aimed at calming tensions with the NLC.