PenCom, NLC deepen collaboration to strengthen pension system, address workers’ concerns
The National Pension Commission (PenCom) and the Nigeria Labour Congress (NLC) have reaffirmed their commitment to strengthening Nigeria’s pension system through sustained collaboration, enhanced transparency, and renewed engagement on workers’ welfare.
Speaking at the BI-Annual roundtable discussion with the leadership of NLC, on Thursday in Abuja, Omolola Oloworaran, Director-General of PenCom, described the dialogue as part of efforts to institutionalise regular consultations between the Commission and organised labour.
She said the engagement, themed “Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners,” marked the fulfilment of her earlier promise to create a structured platform for dialogue with the NLC.
“This engagement reflects the enduring partnership, mutual trust, and shared commitment that have long defined the relationship between PenCom and organised labour.
“The Contributory Pension Scheme (CPS) has restored confidence in the dignity of labour by ensuring that every Nigerian worker’s sweat translates into retirement security. This success is the product of sustained collaboration with the NLC,” Oloworaran said.
Oloworaran highlighted the need for stricter enforcement against employers who deduct pension contributions from workers’ salaries but fail to remit them, as well as those who neglect to pay their own counterpart contributions.
“Today is all about partnership, what we can do together to strengthen enforcement, grow the scheme, and ensure that every worker in Nigeria contributes consistently toward their retirement.
“We must also collaborate more closely to improve compliance, enhance transparency, and ultimately, improve the lives of ordinary Nigerians. This meeting is all about collaboration,” she stated.
The PenCom boss highlighted several key issues for discussion, including the Commission’s Pension Revolution 2.0 initiative aimed at expanding coverage, strengthening regulation, and improving service delivery.
She also mentioned the ongoing review of the Regulation on the Investment of Pension Fund Assets to ensure both safety and competitive returns.
Other discussion areas included compliance with the Pension Reform Act by employers, the proposed amendments to the 2014 Act currently before the National Assembly, and the introduction of the Personal Pension Plan to extend coverage to informal sector workers and the self-employed.
In his remarks, Joe Ajaero, NLC President, commended PenCom for initiating the forum and reaffirmed labour’s readiness to work closely with the Commission in protecting workers’ pension rights.
Ajaero, however, raised concerns over governance gaps within the pension system, including the prolonged non-composition of PenCom’s governing board, despite the appointment of a chairman.
“It is ironic that PenCom sanctions Pension Fund Administrators (PFAs) that fail to hold board meetings, yet the Commission itself has no functional board. A functional board is fundamental to ensuring transparency, accountability, and effective oversight,” he said
He further proposed the creation of a committee which will include members of the NLC and PenCom, also a collaboration framework to institutionalise quarterly consultations between PenCom and labour, strengthen regulatory enforcement against non-compliant employers, and ensure quicker benefit processing for retirees.
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The NLC also advocated a review of the 25% limit on Retirement Savings Account withdrawals for mortgage purposes and urged that pension fund investment options be expanded to include strategic sectors such as agriculture, healthcare, and infrastructure.
“Pension savings must be made more responsive to workers’ needs and the realities of the economy. We must also reduce bureaucratic delays that cause frustration among retirees waiting for their benefits,” Ajaero stressed.
Both PenCom and the NLC agreed to continue engagements aimed at improving compliance, transparency, and service delivery in the pension industry to safeguard the retirement security of Nigerian workers.
