The Federal Government of Nigeria has reportedly responded to two major demands put forward by the Nigeria Labour Congress (NLC), following a recent strike ultimatum.

The addressed issues include the reversal of a 40 percent deduction from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury, and the appointment of Opeyemi Agbaje as the new Chairman of the National Pension Commission (PenCom).

As of the time of this report, PenCom has yet to officially confirm Agbaje’s appointment.

Last week, the NLC, through its president, Joe Ajaero, issued a seven-day ultimatum to President Bola Ahmed Tinubu, threatening to shut down the economy if their demands were not met.

The Congress had called for an end to the diversion of workers’ contributions held with the NSITF and the proper constitution of the PenCom board.

Recent developments suggest the government has acted in response. In a letter dated August 16, 2025, addressed to the NLC, NSITF Managing Director, Oluwaseun Faleye, stated that no further deductions would be made from workers’ contributions or investment proceeds.

Faleye noted that the deductions were initially introduced by a Federal Ministry of Finance circular dated December 28, 2023, which directed a 50 percent automatic deduction from the internally generated revenues (IGR) of all government-owned enterprises.

He clarified that the funds remitted to the NSITF by employers, classified as statutory contributions and not government revenue, had since been excluded from the deduction policy following a directive from the Accountant-General of the Federation in March 2024. He also confirmed that some previously deducted amounts had already been refunded.

According to the letter, assurances were given during August 2025 meetings with the Minister of Finance and the Director-General of the Budget Office that such deductions would not resume in the future.

Reacting to the update, NLC Secretary, Christopher Onyeka, acknowledged receipt of the letter, adding that the union’s executive council would evaluate the correspondence before taking a final decision on the planned industrial action.

He emphasized that the contributions made to the NSITF are meant to provide compensation to workers in case of injuries, not to serve as revenue for the government.

“Safeguarding these funds is our duty,” Onyeka stated.