Pension Funds: Strike Countdown Begins as PenCom, Labour Disagree

Introduction

On August 15, 2025, the Nigeria Labour Congress (NLC) formally initiated a strike countdown, signaling escalating tension surrounding the management of critical social protection funds. The dispute stems from two urgent demands: the constitution of the governing board for the National Pension Commission (PenCom) and the return of allegedly diverted funds from the Nigeria Social Insurance Trust Fund (NSITF) by the federal government.

What Sparked The Strike Threat?

During the Central Working Committee (CWC) meeting held on August 13, 2025, in Abuja, the NLC passed a sweeping resolution demanding compliance within seven working days. This ultimatum—if unmet—would result in nationwide industrial action. The issues? A governance vacuum at PenCom and the alleged diversion of up to 40% of NSITF contributions to the national treasury.1

Why PenCom Matters

The National Pension Commission holds strategic responsibility for the supervision of pension funds — considered deferred wages. Without a constitutionally approved board, PenCom operates without oversight and checks, raising red flags for fund mismanagement or political interference. The NLC contends that this governance failure compromises worker pensions and violates the statutes that created PenCom.

Alleged NSITF Fund Diversion

Perhaps more incendiary is the NLC’s claim that the government has redirected approximately 40% of workers’ contributions to the NSITF into national revenue streams—a move the union regards as theft.
The NSITF is designed to provide essential protection for workers, and any siphoning of those funds undermines both trust and statutory intent. The union insists these diverted funds must be fully returned within seven working days.

Official NLC Ultimatum: The Demands

• Immediate return of diverted NSITF funds within seven working days.
• Constitution of PenCom’s governing board as prescribed by law.
• Submission of a full status report on pension fund management to the NLC.

Failure to meet any of these demands would nullify industrial peace, according to the union.

PenCom’s Point of View

While PenCom has not issued a detailed response, the regulatory body continues its operations amid ongoing controversy. Complicating the matter is the recent appointment of Hafiz Ibrahim Kawu as Executive Commissioner of PenCom on August 11, 2025.
His mandate includes overseeing reforms and possibly steering the commission through the current crisis.

Historical Context: Labour, Pension, and Trust

Nigeria’s public sector has long grappled with stunted pension governance and fund misappropriation. Labour unions have, over the decades, emerged as defenders of worker welfare. This latest showdown marks a new chapter in the public service fight to protect worker rights and social insurance frameworks.

What Happens Next: The Countdown Begins

With the ultimatum set to expire by August 22, 2025, all eyes are on the federal government’s response. If unfulfilled, the NLC’s threat entails disruptive strike action—potentially grounding civil service operations, including pension processing across the nation.

Potential Repercussions of a Strike

A nationwide strike could paralyze pension disbursements, delay government operations, and unsettle public confidence. While past labour actions (like the 2024 general strike) ended in compromise, this conflict’s focus on pension rights raises the stakes higher.

Public and Political Reactions

Public discourse is already heating up on social media and traditional news platforms. Many sympathize with workers’ plight, while others urge swift government engagement to avert nationwide unrest.

Implications for Workers and Retirees

For many Nigerians living off pension incomes, any hiccup in payouts directly affects their livelihoods. This conflict spotlights the importance of transparent fund management and the need to shield deferred wages from misappropriation.

Conclusion

As of August 15, 2025, the strike countdown is officially underway. The Nigeria Labour Congress’ demands are clear: resolve the governance vacuum at PenCom and return NSITF contributions to workers. With the clock ticking, the government’s next move will determine whether dialogue prevails or industrial action rocks the nation.