NLC raises raises alarm over pension transparency, calls for urgent reforms
President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has raised strong concerns over the federal government’s prolonged delay in reconstituting the board of the National Pension Commission (PenCom), warning that the absence of a governing board undermines transparency and accountability in the management of workers’ retirement savings.
Speaking to journalists at the Annual General Meeting of TrustFund Pensions Limited in Abuja, Ajaero lamented that for nearly four years, PenCom has operated without a properly constituted board, despite legal provisions mandating representation from both labour and employers.
“The PenCom board is supposed to have institutional representation from labour and employers, since it is workers’ and employers’ contributions that make up the pension funds. But for years now, that board has not been inaugurated, and yet decisions are being made. That raises questions about accountability,” he said.
Ajaero also expressed concern over persistent delays in the payment of pension entitlements, noting that many retirees still endure long wait times and unpaid benefits despite contributing faithfully during their working years.
He further questioned the handling of revenue from workers’ compensation funds, calling for increased transparency and oversight in the use of such social security contributions.
Touching on broader labour issues, the NLC President emphasized that the economic downturn has eroded the value of both wages and pensions, worsening the welfare of Nigerian workers.
“Whether it is N70,000 or more, workers’ pay cannot go far in an environment where fuel prices, electricity tariffs, and inflation keep rising. The Federal Government needs to renew it’s efforts to stabilise the economy and restore the value of the naira.
Also speaking at the event, the Managing Director/CEO of TrustFund Pensions, Mr. Uche Ihechere, disclosed that the company grew its assets under management by 20 percent in 2024 and recorded a 34 percent increase in profit before tax.
He described the growth as a result of efficient management and strategic investment decisions.
Ihechere welcomed the Federal Government’s proposal to issue a N700 billion bond to clear pension arrears, describing it as a timely intervention and a sign of commitment to retirees’ welfare.
He, however, noted that inflation continues to impact real returns in the pension industry, and called for the development of viable infrastructure-based investment opportunities that can offer higher yields.
Other stakeholders at the event stressed the need for urgent reforms to strengthen regulatory oversight, improve payment systems, and ensure that contributors and retirees receive the benefits due to them without delay.
