By Victor Ahiuma-Young 

The Nigeria Labour Congress , NLC, has threatened a showdown with the National Pension Commission (PenCom ), over alleged irregularities in the management of workers’ pension funds, accusing the commission of secret spending without authorisation and excluding workers’ representatives from critical decision-making processes.

In a letter addressed to the Director-General of PenCom, President of the NLC, Joe Ajaero, expressed deep concern about what he described as a deliberate sidelining of workers and employers from the management of their contributions.

Ajaero noted that despite several reminders, the board of PenCoM had yet to be inaugurated, leaving critical decisions in the hands of individuals “with little or no proprietary rights over workers’ funds.”

The letter dated July 28, and copied the Secretary to the Government of the Federation, the Minister of Finance, and the Minister of Labour and Employment,  reads in part: “We bring to you our compliments as well as wish to register our concerns about the following: The non-inauguration of the board of PenCom in spite of several reminders; The continuous spending and application of funds without authorisation by or from the board; The jeopardy of contributions by workers and employers whose representatives have been kept in the dark about expenditures pertaining to these funds; Possible sinister motives behind these actions and potential irreparable damage to the funds or interests of contributors.”

The NLC described the situation as “curious and unacceptable,” saying :”It is even more curious that it is those with little or no proprietary right over these funds that have ousted those with proprietary right and have taken custody of the funds to the exclusion of others, managing or mismanaging or micro-managing the funds without authorisation or accountability to workers or their representatives.

“Keeping workers and employers or their representatives out of the decision-making process for so long does not only raise legitimate grounds for reasonable suspicion but constitutes a wilful, continuous infringement on the rights of the parties.”

The labour movement issued a two-week ultimatum to PenCoM to inaugurate its board and provide a comprehensive status report on the fund.

“Accordingly, we demand as follows: the inauguration of the board not later than two weeks from the date of this letter, and the submission to us of a full status report of the fund,” Ajaero said.

He warned that failure to meet these demands would compel organised labour to take necessary steps to protect workers’ interests.

“Although we do not intend this as a threat, failure to comply with these legitimate demands will leave us with no choice but to take decisions or actions as we deem fit and appropriate in pursuance of safeguarding these funds,” the letter added.

Agitation for PenCom’s Board inauguration 

NLC had in recent times been expressing worries over the failure of the Federal Government to inaugurate the board of PenCom in line with the Pension Reform Act of 2004.

At the opening ceremony of the NLC Rain School in Uyo, Akwa Ibom State,  on July 21, among others, Ajaero said 

“We are deeply worried about the federal government’s refusal to constitute the boards of statutory institutions where tripartite representation is required by law. The refusal to constitute the PenCoM Board, where labour is statutorily represented, is unlawful and unacceptable.”

Similarly, at Nigeria Employers Consultative Association, NECA, Annual General Meeting, AGM, in Lagos, on July 16, the NLC President represented by a Deputy President and immediate past President-General of the Maritime Workers Union of Nigeria, MWUN, Prince Adewale Adeyanju, also said: “Let us not forget the need to protect workers’ pensions and social insurance contributions.” 

We must ensure that PenCoM’s Board is constituted lawfully and that government refrains from appropriating funds belonging to the people who have contributed them.”