Labour Union Challenges PenCom Over Prolonged Board Vacancy
The Nigeria Labour Congress (NLC) has openly criticized the National Pension Commission (PenCom) for its inadequate response to urgent demands for the swift appointment and inauguration of boards governing critical labour market institutions.
PenCom’s Response Deemed Inadequate by NLC
In a statement issued by NLC President Comrade Joe Ajaero, the union condemned PenCom’s recent press release as a mixture of misleading claims, evasive denials, and weak justifications. The statement accused PenCom’s leadership of shirking accountability amid ongoing governance challenges within the pension sector.
Accountability and Transparency at Stake
Ajaero highlighted that while PenCom dismissed the NLC’s concerns as baseless, it paradoxically shifted blame onto President Bola Ahmed Tinubu for the extended delay in constituting the board. The NLC leader emphasized that PenCom’s defense lacked transparency and failed to present any tangible evidence of federal government efforts to resolve the issue.
Governance Vacuum Undermines Pension Fund Oversight
The absence of a functional governing board for over five years has, according to Ajaero, severely compromised transparency and accountability in managing pension funds. This prolonged vacancy has resulted in a “dysfunctional governance framework,” weakening oversight mechanisms critical to safeguarding workers’ retirement savings.
Protecting Workers’ Interests in Pension Management
The NLC reaffirmed its essential role in shaping Nigeria’s contributory pension scheme and cautioned that excluding working-class representation risks repeating the pitfalls of the obsolete defined benefit system. Ajaero urged PenCom to move beyond excuses and actively lobby the federal government to fulfill its responsibility.
“The government has clearly erred by managing workers’ funds without adequate labour oversight,” Ajaero stated. “PenCom must stop deflecting blame and ensure the federal government acts decisively to restore proper governance.”
NLC’s Commitment to Vigilant Oversight
The labour union pledged to persistently hold the government accountable for the prudent administration of workers’ pensions. Ajaero warned that ignoring these governance failures could lead to costly consequences for Nigeria’s workforce and the nation’s economic stability.
“In response to ongoing pressure from the NLC for the Federal Government to appoint and inaugurate boards of key labour institutions, including PenCom and the Nigeria Social Insurance Trust Fund (NSITF), PenCom’s management issued a statement filled with half-truths and evasions,” the NLC declared.
“What remains unclear is the specific action taken by the government to address the board’s vacancy, which has persisted for over five years. This lack of transparency directly undermines confidence in pension fund management.”
Call for Immediate Government Action
The NLC underscored that the root cause of pension fund mismanagement lies in the absence of a properly constituted governing board. The union insists that no amount of public relations efforts can mask this fundamental flaw.
“We seek a firm commitment from the Federal Government to honor the sacrifices of Nigerian workers by ensuring that the contributory pension scheme is not compromised by poor oversight and accountability, as was the case with the old defined benefit system,” Ajaero concluded. “What is so challenging about appointing the PenCom board?”
Context and Implications
Recent data from the National Bureau of Statistics indicates that Nigeria’s pension assets have grown to over ₦13 trillion, underscoring the critical need for robust governance structures. Without a functional board, the risk of mismanagement and erosion of workers’ retirement benefits remains high, threatening the financial security of millions of Nigerian employees.
Similar challenges have been observed in other countries with contributory pension schemes, where governance lapses have led to significant losses. For instance, in South Africa, reforms following governance failures in pension funds have emphasized the importance of inclusive oversight and timely board appointments to protect beneficiaries.
0 Comments