Board Inauguration Beyond Our Control, PenCom Responds To NLC

The National Pension Commission (PenCom) has responded to allegations by the Nigeria Labour Congress (NLC) over the management of workers’ pension funds and the non-inauguration of its Governing Board, describing the claims as “incorrect, gravely misleading and surprising.”

In a letter dated August 18, 2025, and signed by its acting director of corporate communications, Ibrahim Garba Buwai, PenCom said the issues raised by the NLC were outside its control and sought to correct the records.

The NLC, in a letter dated July 28, 2025, and signed by its President, Comrade Joe Ajaero, had accused PenCom of sidelining workers and employers in the management and investment of pension contributions, operating without a properly inaugurated board, and engaging in unauthorised spending. The labour union gave PenCom a two-week ultimatum to inaugurate its board and provide a comprehensive report on pension funds. A follow-up letter on August 13, 2025, reaffirmed the union’s demands.

Responding, PenCom clarified that while Section 19 of the Pension Reform Act (PRA) 2014 provides for the establishment of its Board, the appointment of members is solely the prerogative of the President, subject to confirmation by the Senate.

The Commission reminded the NLC that it is one of the ten institutions statutorily represented on the PenCom Board. The president appointed six other members, including the chairman, the director general, and four executive commissioners.

“It is clear that the NLC is well aware that it is outside the purview of PenCom to appoint a Board for itself,” the Commission stated, adding that the Federal Government has already taken steps to address the issue.

On claims of unauthorised spending, PenCom explained that its budget is approved annually by the National Assembly in accordance with constitutional provisions, regardless of whether a board is in place.

The Commission also noted that all its procurement activities strictly follow the Public Procurement Act 2007.

PenCom reassured pension contributors and retirees that their funds remain safe and secure, stressing that 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 regulatory 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 jeopardised,” the Commission said.

Reacting to NLC’s suggestion of “possible sinister motives,” PenCom expressed surprise, insisting that it has continuously operated with transparency and accountability.

While rejecting the accusations, PenCom reaffirmed its commitment to engagement with organised labour, noting that the NLC had historically played a critical role in shaping the Pension Reform Acts of 2004 and 2014.

“The doors of the Commission have been, and would remain, open to the NLC and other social partners for inquiries and engagements on any issue of concern relating to the pension industry,” PenCom concluded.