PENCOM ASSURES NLC OF PENSION FUNDS’ SAFETY, DEFENDS SPENDING PROCESS.
… Says Board Inauguration Beyond Its Control, Open to Dialogue
The National Pension Commission (PenCom) has dismissed allegations by the Nigeria Labour Congress (NLC) over the management of workers’ pension funds, non-inauguration of its board, and claims of unauthorised spending.
In a letter dated 18 August 2025 and signed by Acting Director of Corporate Communications, Ibrahim Garba Buwai, PenCom described the accusations as “incorrect, gravely misleading and surprising.” The response followed letters from the NLC dated 28 July and 13 August 2025, in which the labour union accused PenCom of sidelining workers and employers, operating without a properly constituted board, and failing to give transparent reports on the funds.
Funds Safe and Secured
PenCom assured workers, retirees, and the public that pension contributions remain safe and properly managed. It explained that the Commission does not directly invest pension funds. Rather, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) handle investments and safekeeping under strict regulations and close supervision.
“There is nothing to suggest that the funds are in any jeopardy,” the letter stated, adding that contributors and employers are not excluded from investment information. PenCom also rejected insinuations of “sinister motives,” stressing its record of transparency and accountability.
Board Inauguration Not Within PenCom’s Powers
Addressing NLC’s concerns about the non-inauguration of its board, PenCom clarified that the appointment of members rests solely with the President, subject to Senate confirmation, as provided by the Pension Reform Act (PRA) 2014. The NLC, PenCom noted, is among the 10 statutory institutions represented on the board.
“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 said, while assuring that the Federal Government has already taken steps to address the issue.
Budget and Spending Process
On claims of unauthorised spending, PenCom emphasised that its budget is approved by the National Assembly in line with the Constitution, whether or not a board is in place. It also stressed that all procurement activities are carried out in accordance with the Public Procurement Act 2007.
Openness to Dialogue
Reiterating its readiness for constructive engagement, PenCom reminded the NLC of its historical role in shaping the PRA 2004 and 2014. The Commission noted that organised labour has always had access to its management and had in the past engaged positively on pension-related matters.
“The doors of the Commission remain open to the NLC and other social partners for inquiries and engagements on any issue of concern relating to the pension industry,” PenCom affirmed.
