NLC protesters
Nigeria Labour Congress (NLC) has urged the National Pension Commission (PenCom) to increase the withdrawal limit for workers’ Retirement Savings Accounts (RSAs) from 25 per cent to 50 per cent, to help employees meet pressing financial obligations in the face of rising economic hardship.
NLC President, Comrade Joe Ajaero, made the appeal on Thursday during a roundtable discussion with PenCom management in Abuja. The meeting, themed: “ _Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners,_ ” focused on improving workers’ access to their pension funds and strengthening the contributory pension system.
Ajaero explained that the proposed upward review would give workers greater financial flexibility to invest in key areas such as agriculture, education, and healthcare, particularly at a time when many Nigerians are struggling to cope with the high cost of living.
He also raised concerns about the continued delay in fully constituting the PenCom Governing Board, warning that the absence of a complete board poses risks to the integrity and effective governance of the Contributory Pension Scheme (CPS).
“Congress is deeply concerned about the continued non-constitution of the full board of the PenCom.
In the absence of this board, how do we ensure the integrity of the commission’s actions until the board is in place?” Ajaero questioned.
The labour leader further called for greater transparency and efficiency in pension administration. He urged PenCom to leverage technology to shorten the long waiting period retirees face before receiving their benefits.
“Firstly, the NLC urged PenCom to leverage technology to significantly reduce the long processing time for retirees to access their entitlements, demanding payments within weeks, not months after retirement.
“Secondly, we propose a formal establishment of a standing NLC–PenCom committee to meet quarterly to proactively address workers’ grievances.
“Thirdly, they called for immediate regulatory action against ineffective PFAs and defaulting employers, including publishing the names of non-compliant employers and applying stiffer sanctions,” Ajaero said.
He also expressed concern that workers were not adequately informed about the proposed amendments to the Pension Reform Act (PRA) 2014, stressing that transparency and consultation were key to maintaining trust in the system.
Responding, PenCom Director-General, Mrs. Omolola Oloworaran, described the CPS as one of Nigeria’s most transformative social reforms, noting that it had helped restore confidence and dignity in retirement.
Oloworaran said the commission was driving a series of reforms under the Pension Revolution 2.0 initiative, aimed at expanding coverage, strengthening regulation, and improving service delivery.
She added that discussions also touched on the revised Regulation on Investment of Pension Assets, designed to ensure contributors’ funds remain safe while delivering optimal returns.
The DG revealed that the Micro-Pension Scheme had been renamed the Personal Pension Plan, and that PenCom would be sharing updates on the proposed amendments to the PRA 2014, with input expected from the NLC.
“The CPS can only remain strong when Nigerian workers believe in it.
And how better to improve trust in the system than partnering with the Nigerian Labour Congress, which is closer to the people and champions their cause,” she said.
Welcoming the NLC delegation earlier, Oloworaran emphasised the importance of collaboration between PenCom and organised labour, especially as the commission intensifies its regulatory drive.
“There will be no PenCom without labour, and we need labour to achieve our goals as we go into full enforcement mode. Labour is a reliable partner that we want to count on,” she affirmed.
