NLC Issues 7-Day Ultimatum to FG Over Alleged Diversion of Workers’ Funds

The Nigeria Labour Congress (NLC) has issued a stern warning of a nationwide strike if the Federal Government fails to refund what it describes as billions of naira allegedly diverted from workers’ social insurance contributions. The union has also given the government one week to constitute a governing board for the National Pension Commission (PenCom).

In a communiqué issued on Thursday, NLC President Joe Ajaero accused the Federal Government of unlawfully redirecting 40 per cent of funds from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury. The NSITF, funded through payroll deductions from millions of workers, is designed to provide financial protection in cases of injury, job loss, or other emergencies. Ajaero described the alleged diversion as a flagrant violation of the laws establishing the fund, insisting that pension funds are deferred wages, not government revenue. He warned that any further interference would provoke industrial unrest.

The NLC also criticised the government’s failure to appoint a PenCom governing board, arguing that the leadership vacuum leaves billions in retirement savings exposed to political interference and potential mismanagement. The union has demanded that all diverted funds be refunded within seven working days, that a full status report on pension assets be submitted, and that the PenCom board be constituted within the same period.

This standoff comes against the backdrop of wider disputes over pension management in the country. In July, a coalition of labour unions in Ogun State gave the government 72 hours to suspend plans for a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth more than ₦82 billion.

Responding to the NLC’s claims, PenCom’s Head of Corporate Communications, Ibrahim Buwal, said the appointment of a governing board is a matter for the Federal Government and not within the commission’s purview. He maintained that pension assets under the Contributory Pension Scheme remain secure and are growing due to regular contributions and profitable investments, stressing that no pension funds are missing. The Nigeria Employers’ Consultative Association (NECA) also urged the government to comply with the Pension Reform Act by reconstituting the PenCom board, noting that employers and workers are the sole contributors and critical stakeholders in the sector.

The NSITF has yet to issue an official statement on the allegations. Manager of Actuaries, Planning and Research, Emmanuel Ulayi, confirmed there was no formal response, while the Head of Corporate Affairs, Alexandra Mede, said via text message that she was hospitalised.

At the same meeting, the NLC ratified the dissolution of its Edo State Council leadership over alleged unethical practices, anti-union conduct, and constitutional violations, appointing a caretaker committee to oversee affairs until fresh elections are held. The Congress also criticised government policies it said had worsened inflation, unemployment, hunger, insecurity and the collapse of public services, calling for a people-focused development model anchored on living wages, industrial revival, public ownership of strategic sectors and stronger social protection.

Ajaero rejected what he described as false government claims of ownership over the NLC National Headquarters, insisting it was purchased with workers’ contributions. He further accused the administration of cyber and media intimidation of trade unions and of covertly attempting to amend the NSITF Act to assume full control of the fund. According to the communiqué, the NSITF belongs solely to the Nigerian working class and the NLC will deploy all legitimate means to defend workers’ rights and resources.