PenCom, NLC Clash Over Management of N24.6 Trillion Pension Assets

Abuja, Nigeria — The National Pension Commission (PenCom) and the Nigeria Labour Congress (NLC) are embroiled in a dispute concerning the administration of the country’s N24.6 trillion pension fund assets.

Earlier, the labour union gave PenCom a two-week ultimatum to inaugurate its board and provide a detailed report on the status of the pension funds. In response, PenCom condemned the NLC’s claims, accusing the labour group of misleading the public regarding pension fund management and the absence of a properly inaugurated board.

PenCom’s Acting Director of Corporate Communications, Ibrahim Garba Buwai, described the NLC’s allegations as inaccurate, highly misleading, and surprising.

NLC President Comrade Joe Ajaero, in a letter dated July 28, 2025, accused PenCom of excluding workers and employers from pension fund management and investments, running operations without a duly inaugurated board, and unauthorized spending. The union reiterated these concerns in another letter on August 13, 2025.

Responding, PenCom assured all pension contributors and retirees that their funds remain secure.

The commission clarified that it does not manage pension fund investments directly. Instead, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) manage and safeguard these investments under strict regulatory oversight.

PenCom noted, “It is erroneous to imply that contributors and employers are kept uninformed about pension fund investments, and there is no threat to the safety of the funds.”

Addressing the NLC’s hint at “possible sinister motives,” PenCom expressed disappointment, emphasizing it operates transparently and responsibly.

Regarding the board’s non-inauguration, PenCom pointed out that while the Pension Reform Act (PRA) 2014 mandates the establishment of its board, appointing members is the President’s prerogative, subject to Senate approval.

PenCom reminded NLC that the labour union is one of ten institutions represented on its board. The President appoints the other six members, including the Chairman, Director General, and four Executive Commissioners.

PenCom assured the NLC that the Federal Government has taken steps to resolve the board appointment issue.

By Taiwo Olatinwo | August 25, 2025