The Nigeria Labour Congress (NLC) has issued a seven-day ultimatum to the Federal Government over the alleged diversion of workers’ insurance contributions, warning that failure to act could trigger nationwide strikes and protests.
The union accused the government of illegally taking 40% of contributions meant for the Nigeria Social Insurance Trust Fund (NSITF) and diverting it into the national treasury. These funds—drawn from payroll deductions—are meant to support workers in cases of injury or job loss.
In a statement on Thursday, NLC President Joe Ajaero condemned the move as a “flagrant violation” of the law that established the NSITF, stressing that pension and insurance funds are “deferred wages,” not government revenue.
The union demanded that:
- All diverted funds be returned within seven working days
- A full report on pension fund status be published
- A Governing Board for the National Pension Commission (PenCom) be appointed immediately
Ajaero warned that if the demands are not met, the NLC would no longer guarantee industrial peace.
Government, PenCom Respond
In response, PenCom’s Head of Corporate Communications, Ibrahim Buwal, said the safety of pension funds remains intact and there are no missing contributions. He clarified that appointing a Governing Board is a responsibility of the Federal Government, not the agency itself.
The Nigeria Employers’ Consultative Association (NECA) backed the NLC, calling on the government to comply with the Pension Reform Act by reconstituting the PenCom board. NECA’s Director-General, Adewale-Smatt Oyerinde, said workers and employers—who fund the pension system—must be properly represented in its governance.
NSITF Silent
The NSITF has yet to respond officially to the allegations or the NLC’s ultimatum. When contacted, NSITF’s Manager of Planning and Research, Emmanuel Ulayi, confirmed there was “no official response yet.” The agency’s head of corporate affairs was reportedly unavailable due to hospitalization.
Wider Concerns and Internal Union Actions
Beyond the pension dispute, the NLC also:
- Dissolved its Edo State Council leadership over alleged misconduct, appointing a caretaker committee
- Criticized government economic policies, blaming them for inflation, unemployment, hunger, and insecurity
- Rejected claims by the Tinubu administration of ownership of the NLC national headquarters, asserting it was funded by workers
- Accused the government of cyber intimidation and attempting to amend the NSITF Act to gain control over workers’ funds
Calling these moves a direct threat to workers’ rights, the NLC vowed to resist any action that undermines the principle of shared governance or misuses contributions from Nigerian workers.
