NLC 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.

Meanwhile the managing Director and Chief Executive Officer of Trustfund Pensions Limited, Mr Uche Ihechere, disclosed that Trustfund Pensions recorded significant growth across key financial indicators for the year ended December 31, 2024, underscoring its resilience in a challenging macroeconomic environment.

According to him, the company’s Assets Under Management (AUM) rose by 19 per cent from ₦1.03 trillion in 2023 to more than ₦1.23 trillion in 2024. In the same period, Profit Before Tax (PBT) increased by 46 per cent to ₦3.8 billion, while Profit After Tax (PAT) grew by 48 per cent from ₦2.5 billion in the previous year.

Ihechere noted that shareholders’ funds rose by 12 per cent to ₦23 billion, well above the ₦5 billion regulatory minimum. He attributed the performance to the company’s strategic strength and efficient capital management.

“In recognition of this outstanding performance, the Board of Directors proposed—and shareholders approved—a dividend payout of 55 kobo per share,” he said. “This reaffirms Trustfund’s consistent focus on rewarding its investors while maintaining strategic reinvestment for future growth.”

Ihechere said the company remains committed to driving the next phase of transformation in the pension industry, backed by its strong capital base, dynamic workforce, and ongoing strategic investments.

Also speaking at the AGM, the Chief Executive Officer of Chapel Hill Denham, Mr Bolaji Balogun, said sustained strong investment performance is key to shielding pension contributors’ savings from the eroding effects of inflation.

Balogun noted that his firm had delivered solid returns and its strongest-ever dividend in 2024, supported by a well-capitalised business model. He stressed the importance of diversifying pension portfolios beyond fixed-income instruments, suggesting increased investment in equities, infrastructure, and alternative assets.