The Nigeria Labour Congress (NLC) has warned of an imminent nationwide strike if the Federal Government fails to return what it claims are billions of naira allegedly diverted from workers’ social insurance contributions. The union has also demanded the immediate appointment of a Governing Board for the country’s pension regulatory body, giving a one-week ultimatum.

The NLC accused the government of diverting 40% of contributions meant for the Nigeria Social Insurance Trust Fund (NSITF) into federal revenue. These contributions, sourced from workers’ payroll deductions, are intended to provide a safety net in cases of workplace injury or job loss.

In response, the National Pension Commission (PenCom) dismissed the claims, stating that the Contributory Pension Scheme (CPS) remains secure and continues to experience steady growth.

NLC President Joe Ajero, in a communiqué issued on Thursday, described the alleged diversion as a violation of the laws establishing the NSITF, asserting that the move undermines workers' right to social protection. “Pension funds are deferred wages, not government revenue,” the union said, warning that further interference could trigger mass industrial action.

The NLC further criticised the failure to appoint a Governing Board for PenCom, warning that the leadership vacuum leaves billions in pension assets vulnerable to mismanagement and political interference.

These developments unfold amid wider discontent surrounding pension management across several states. In July, a group of labour unions in Ogun State issued a 72-hour ultimatum to halt a planned contributory pension scheme rollout, citing a backlog of over N82 billion in unpaid contributions spanning 17 years. The coalition called for either a return to the previous pension model or a delay until all arrears are settled.

The NLC’s communiqué demanded the NSITF refund all allegedly diverted funds within seven working days and insisted that PenCom’s board be constituted and a comprehensive status report on pension assets be released within the same period. The union warned that failure to meet these conditions could lead to widespread protests and a breakdown of industrial peace.

PenCom and NECA Respond

Speaking on the matter, the Head of Corporate Communications at PenCom noted that the appointment of a Governing Board is the responsibility of the Federal Government. He emphasized that PenCom is currently reviewing the NLC’s demands.

On the safety of pension funds, he reiterated that assets under the CPS remain intact and continue to grow due to consistent contributions and profitable investments. Contributors, he added, receive regular updates on their Retirement Savings Accounts and assured that no funds are missing.

The Nigeria Employers’ Consultative Association (NECA) also weighed in, calling for the reconstitution of PenCom’s board in line with the Pension Reform Act. NECA’s Director-General stressed the importance of board representation for stakeholders, emphasizing that only employers and workers contribute to the pension scheme. He expressed confidence that the government would act promptly.

NSITF Yet to Respond

The NSITF has yet to issue an official response to the NLC’s seven-day ultimatum. A representative from the Fund’s Actuaries, Planning and Research department confirmed there was no public statement at the time of inquiry.

Efforts to reach the Fund’s Head of Corporate Affairs were unsuccessful. In a message response, she disclosed she was hospitalized and unable to comment.

Other Developments

At the same meeting, the NLC announced the dissolution of the leadership of its Edo State Council, citing misconduct, anti-union activities, and constitutional violations. A caretaker committee has been installed to manage the council’s affairs pending new elections.

In its broader national assessment, the NLC condemned government policies it said have deepened inflation, unemployment, hunger, insecurity, and the breakdown of essential public services. The Congress advocated for a developmental model focused on public ownership of key sectors, living wages, industrial growth, and strengthened social protection mechanisms.

Ajero also rejected what he described as a false claim by the Federal Government over ownership of the NLC National Headquarters, asserting that it was funded through workers’ contributions. He further alleged a campaign of cyber and media intimidation against trade unions and accused the government of covert attempts to amend the NSITF Act to assume full control of the fund.

“This is a direct assault on workers’ rights, their hard-earned savings, and the principle of tripartite governance under international labour standards,” the NLC stated, affirming that the NSITF belongs solely to Nigeria’s working class and that it would pursue all lawful means to defend its members’ interests.