By Bisi Bamishe
The National Pension Commission (PenCom) has responded to the Nigeria Labour Congress (NLC) on recent issues raised on the management of workers’ pension funds and non-inauguration of PenCom’s Governing Board.
In a letter dated 28 July 2025, NLC President Comrade Joe Ajaero accused PenCom of sidelining workers and employers in the management and investment of their pension contributions, operating without a properly inaugurated board, and engaging in unauthorised spending.
The labour union issued a two-week ultimatum to PenCom to inaugurate its board and provide a comprehensive status report on the funds.
The NLC also wrote another letter to PenCom on 13 August 2025 communicating the resolutions of its Central Working Committee meeting, which re-echoed the same issues as the initial letter.
Responding in a letter dated 18 August 2025 and signed by its Acting Director of Corporate Communications, Ibrahim Garba Buwai, PenCom described the allegations as “incorrect, gravely misleading and surprising.”
PenCom rejected the accusations and sought to put the records straight.
Pension Funds Safe, secured
PenCom assured the NLC, all pension contributors and retirees that their pension contributions remain safe and secured. In the letter, PenCom said the Commission does not directly invest pension funds. Instead, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) manage and safe-keep the investments under strict regulations and supervision.
“It is, therefore, incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to suggest that the funds are in any jeopardy,” the letter read.
Reacting to the NLC’s suggestion of “possible sinister motives,” PenCom expressed surprise, saying it has always operated with transparency and accountability.
Board Inauguration beyond PenCom’s Control
On the NLC’s complaint about the non-inauguration of PenCom’s board, PenCom noted that while Section 19 of the Pension Reform Act (PRA) 2014 provides for its establishment, the appointment of board members is strictly the prerogative of the President, subject to Senate confirmation.
PenCom reminded the NLC that by virtue of provisions of PRA 2014, the NLC is one of the 10 institutions represented on PenCom’s Board.
In addition, PenCom said, the President has the prerogative of appointing the other six members, comprising the Chairman, the Director General and the four Executive Commissioners.
“It is clear that the NLC is well aware that it is outside the purview of PenCom to appoint a Board for itself,” PenCom told NLC.
However, PenCom assured NLC that appointment of Board members is no longer a matter of concern as the Federal Government has already taken steps to address the issue.
Budget and Spending Process Defended
PenCom dismissed claims of unauthorised spending, explaining that the National Assembly, as provided under the Constitution, approves PenCom’s budget, regardless of whether a board is in place or not.
In the letter, PenCom drew the attention of the NLC to the fact that all its procurement activities are undertaken in accordance with the Public Procurement Act 2007.
Commitment to Engagement
PenCom reiterated its openness to dialogue and collaboration with organised labour, reminding the NLC of its historic role in shaping the PRA 2004 and 2014.
PenCom added that the labour union had unfettered access to its management and had previously engaged PenCom constructively on pension industry matters.
“The doors of the Commission have been, and would remain, open to the NLC and other social partners for inquiries and engagements on any issue of concern relating to the pension industry,” PenCom concluded.
