PenCom to NLC: Pension funds safe, well managed

…Welcomes dialogue with organised labour

By Bimbola Oyesola

The National Pension Commission (PenCom), yesterday, dispelled concerns raised by the Nigeria Labour Congress (NLC) on the safety of workers’ retirement savings, stressing that the funds are “safe, secure and managed with utmost transparency.”

In a response dated August 18, 2025, and signed by the Acting Director of Corporate Communications, Ibrahim Garba Buwai, PenCom described the NLC’s allegations as “incorrect, gravely misleading, and surprising.”

Earlier, in separate letters dated July 28 and August 13, NLC President Joe Ajaero had accused PenCom of sidelining workers and employers in managing pension assets, operating without a governing board, and engaging in unauthorised expenditure. The union also gave a two-week ultimatum to inaugurate the Commission’s board and provide a detailed report on pension funds.

But PenCom, in its reply, firmly rejected the claims.

“It is incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to suggest that the funds are in any jeopardy,” Buwai stated.

The Commission explained that it does not directly invest pension funds but regulates licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), who manage and safeguard investments under strict supervision.

On the issue of its Governing Board, PenCom clarified that the power to appoint members rests solely with the President, subject to Senate confirmation.

“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 noted, while assuring that the Federal Government had already taken steps to address the matter.

PenCom also reminded the NLC that it is one of 10 statutory institutions represented on the board, alongside appointees of the President, including the Chairman, the Director-General, and four Executive Commissioners.

Dismissing claims of unauthorised spending, the Commission stressed that all its budgetary allocations are approved by the National Assembly in line with constitutional provisions. It further added that its procurement processes comply strictly with the Public Procurement Act 2007.

“The insinuation of unauthorised expenditure does not reflect the realities of how our budget is appropriated and managed,” Buwai emphasised.

Reiterating its readiness for dialogue, PenCom recalled the NLC’s crucial role in shaping both the 2004 and 2014 Pension Reform Acts.

“The doors of the Commission have been, and would remain, open to the NLC and other social partners for inquiries and engagements on any issue of concern relating to the pension industry,” the Commission assured.

With its response, the Commission said it aimed to calm anxieties among contributors while extending an olive branch to labour to resolve the matter through dialogue rather than confrontation.