PenCom Says Pension Funds Safe Amid NLC Criticism

The National Pension Commission (PenCom) has reassured Nigerians that the country’s N24.6 trillion pension funds remain safe and well-managed, despite ongoing criticisms from the Nigeria Labour Congress (NLC).

The NLC had recently issued an ultimatum demanding the immediate inauguration of PenCom’s Governing Board and a comprehensive report on the status of the pension funds. The NLC alleged that PenCom had sidelined workers and employers in managing the funds, operated without an appropriately appointed board, and engaged in unauthorised spending.

In a firm response, PenCom’s acting director of Corporate Communications, Ibrahim Garba Buwai, dismissed the claims as incorrect and misleading. He emphasised that PenCom does not directly invest pension funds but oversees licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), who manage and safeguard the investments under strict regulatory supervision.

“It is wrong to suggest that contributors and employers are kept in the dark or that pension funds are at risk,” Buwai stated, reaffirming the commission’s commitment to transparency and accountability.

While the labour union had earlier given PenCom a two-week ultimatum to inaugurate its board and provide a comprehensive status report on the funds, PenCom condemned NLC, alleging that the labour group was misleading Nigerians about the management of workers’ pension funds and the non-inauguration of PenCom’s Governing Board.

The acting director of Corporate Communications, Ibrahim Garba Buwai, described NLC allegations as incorrect, gravely misleading and surprising.

Recall that NLC helmsman,  Comrade Joe Ajaero, had, in a letter dated 28 July 2025, allegedly accused PenCom of sidelining workers and employers in the management and investment of their pension contributions, operating without a properly inaugurated board, and engaging in unauthorised spending.

The union had given Pencom a two-week ultimatum to inaugurate its board and provide a comprehensive status report on the funds.

Besides, the union wrote another letter to PenCom on 13 August 2025 communicating the resolutions of its Central Working Committee meeting, which re-echoed the same issues as the initial letter.

Condemning the union’s accusations, PenCom assured NLC and all pension contributors and retirees that their pension contributions remain safe and secure.

The commission said it does not directly invest pension funds. Instead, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) manage and safeguard the investments under strict regulations and supervision.

“It is, therefore, incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to suggest that the funds are in jeopardy,” the pension industry regulator clarified.

Furthermore, PenCom expressed dismay at NLC’s suggestion of ‘possible sinister motives’, saying it has always operated with transparency and accountability.

Reacting to the NLC’s complaint about PenCom’s board’s non-inauguration, the commission noted that, while Section 19 of the Pension Reform Act (PRA) 2014 provides for its establishment, the appointment of board members is strictly the prerogative of the president, subject to Senate confirmation.

The commission reminded NLC that, under the provisions of PRA 2014, the labour group is one of the 10 institutions represented on PenCom’s board.

PenCom said the President had the prerogative of appointing the other six members, comprising the chairman, the director general, and the four executive commissioners, adding, “ It is clear that the NLC is well aware that it is outside Pencom’s purview to appoint a Board for itself.”

It assured NLC that the appointment of Board members was no longer a matter of concern, as the Federal Government had already taken steps to address the issue.