The Traffic

PenCom Meets NLC, Assures Safety of Pension Funds Amid Labour Concerns

Oloworaran moves to rebuild trust; Ajaero raises lingering issues on transparency, gratuity, PFAs, and unremitted contributions

The National Pension Commission (PenCom) has reassured Nigerian workers that their pension contributions remain safe, amid renewed concerns from organised labour over alleged mismanagement and lack of transparency in the system.

Speaking during a courtesy visit to the President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, in Abuja last Friday, PenCom’s Director-General, Mrs. Omolola Oloworaran, said contributors’ funds were well-protected by inbuilt safeguards.

“Contributors’ funds are not in the custody of PenCom, but managed by Pension Fund Administrators (PFAs), under strict regulation. The system has checks and balances to ensure safety,” Oloworaran stressed.

She added that the visit was meant to correct “misunderstandings created by past comments and media exchanges” while seeking a “mutually beneficial relationship” with the NLC going forward.

Labour’s Historical Grievances

In response, Ajaero acknowledged the DG’s conciliatory approach but reminded her that the NLC’s mistrust of PenCom predated her appointment.

He cited unresolved grievances such as:

Failure to constitute PenCom’s board, with critical decisions allegedly taken by “unknown entities” in violation of the Pension Reform Act.

Shortchanging of contributors by PFAs, and ambiguous treatment of gratuity under the Contributory Pension Scheme (CPS).

Agitations to return to the Defined Benefit Scheme, which collapsed under the weight of mismanagement before being replaced in 2004.

Non-remittances of contributions by employers/governments.

Denial of unionisation rights for workers employed in PFAs.

Ajaero recalled that previous NLC complaints—including a formal letter to government—had been ignored, leading to distrust. He warned that any attempt to sideline labour in pension governance would be “a costly venture.”

“The funds belong to workers, not government. Congress is on the board of PenCom, and we cannot be unjustly sidelined,” Ajaero said.

Path to Collaboration

While reaffirming NLC’s readiness to work with the DG, Ajaero noted that there were still “serious challenges ahead” that must be tackled jointly.

Oloworaran, on her part, maintained that PenCom is committed to transparency, accountability, and information sharing, insisting that the board’s oversight role could not be diminished.

The meeting marks the beginning of what both sides described as a renewed partnership to safeguard the integrity of Nigeria’s ₦17 trillion Contributory Pension Scheme, which affects millions of workers nationwide.

By Haruna Yakubu Haruna