•NLC proposes policy review to enhance access, efficiency in scheme

By Victor Ahiuma-Young

The Nigeria Labour Congress, NLC, and the National Pension Commission, PenCom, have commenced strategic discussions aimed at addressing the persistent delays in pension payments and expanding the range of benefits available to Nigerian workers under the Contributory Pension Scheme, CPS.

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The dialogue, held in Abuja, Vanguard gathered, was part of efforts by both institutions to deepen collaboration, improve the efficiency of the pension system, and restore confidence among contributors and retirees.

President of the NLC, Joe Ajaero, who led the Labour delegation, according to sources, said the Congress viewed the interactive session as a positive step toward resolving operational challenges and making the pension system more transparent and worker-friendly.

According to Ajaero, “We consider this engagement a positive step toward strengthening collaboration between PenCom and the Congress — collaboration that is crucial to ensuring the welfare of Nigerian workers, which remains our foremost concern. Our purpose here is simple but significant: to have a frank, constructive, and solution-driven conversation about the pressing challenges within the Contributory Pension Scheme and to explore how we can make it more efficient, transparent, and beneficial to the workers we all serve.”

He identified several issues undermining the smooth implementation of the pension system, including the non-inauguration of a full Board for the Commission, weak regulatory enforcement, and the protracted delay in payment of retirees’ benefits.

“Congress is deeply concerned about the continued absence of a fully constituted Board for the National Pension Commission. While a Chairman is in place, the lack of a complete Board undermines proper oversight, delays crucial policy decisions, and weakens the governance structure of this vital institution.

“We urge PenCom to work with the relevant authorities to ensure the immediate inauguration of the full Board. This is fundamental to transparency, accountability, and effective service delivery.”

To strengthen continuous engagement, the NLC President proposed the establishment of a standing NLC–PenCom Committee that would meet quarterly to review progress on implementation, address emerging issues, and serve as a rapid-response platform for workers’ grievances.

He also urged PenCom to take decisive action against defaulting employers and inefficient Pension Fund Administrators, PFAs.

 “The NLC continues to receive troubling reports from workers about inefficiencies among some PFAs and persistent non-compliance by several employers who fail to remit deducted pension contributions. We therefore call on PenCom to strengthen its regulatory and enforcement powers,” he said.

On improving pre-retirement access, Ajaero called for a review of the existing rule that allows RSA holders to withdraw only 25 percent of their funds for residential mortgage purposes. 

“Given the harsh economic realities, workers need greater flexibility to use part of their savings for critical investments before retirement. We therefore propose increasing the accessible portion from 25 percent to 50 percent and expanding the scope of eligible investments to include agriculture, education, and healthcare,” he added.

The NLC President lamented the long waiting period faced by retirees before accessing their lump-sum payments and monthly pensions, urging PenCom to leverage technology and process re-engineering to ensure faster disbursement. 

“After decades of service, many retirees are forced to wait months before receiving their benefits. This defeats the very purpose of the pension system as a social security safety net,” he stated.

Ajaero also advocated more innovative approaches to expand coverage to the informal economy and called for institutionalised stakeholder engagement as a key operational principle of the Commission.

He reaffirmed the NLC’s commitment to work with PenCom to build a more transparent and worker-centered pension system, saying, “The Nigeria Labour Congress is not just a stakeholder — we are the voice of the owners of the pension funds. The savings belong to workers, and their confidence in the Contributory Pension Scheme is the foundation on which the entire system stands.”

The NLC President expressed optimism that addressing these issues — from governance and compliance to access and efficiency — would go a long way in restoring trust, ensuring prompt payments, and improving the overall welfare of Nigerian workers.

Vanguard News