PenCom slams NLC, says claims of fraud, board crisis baseless

By Victor Ahiuma-Young

The National Pension Commission, PenCom,  has dismissed allegations by the Nigeria Labour Congress, NLC,  over the management of workers’ pension funds and the delay in inaugurating its governing board, describing them as “baseless, misleading, and surprising.”

In a letter dated August 18, 2025, by the Commission’s Acting Director of Corporate Communications, Ibrahim Buwai, PenCom responded to NLC’s petitions of July 28 and August 13, in which the NLC accused the Commission of sidelining workers and employers, operating without a legally constituted board, and engaging in unauthorised spending.

PenCom rejected the claims, stressing that pension funds remain safe and well-regulated.

“The Commission does not directly invest pension funds. Instead, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) manage and safeguard the funds under strict regulations and oversight. It is, therefore, incorrect to suggest that contributors are kept in the dark or that the funds are in jeopardy,” the statement read.

On the issue of board inauguration, PenCom clarified that the appointment of its governing board is strictly the prerogative of the President, subject to Senate confirmation, as stipulated in Section 19 of the Pension Reform Act (PRA) 2014.

“It is clear that the NLC is aware that PenCom cannot appoint a Board for itself. The responsibility rests entirely with the President. However, the Federal Government has already taken steps to resolve the matter,” the Commission noted.

Addressing accusations of financial impropriety, PenCom explained that all its budgets are vetted and approved by the National Assembly in line with the Constitution, while its procurement processes strictly comply with the Public Procurement Act of 2007.

The Commission also emphasised its openness to dialogue, reminding the NLC of its historic role in shaping the Pension Reform Acts of 2004 and 2014.

“The doors of the Commission have always remained open to the NLC and other stakeholders for constructive engagement on any issue of concern relating to the pension industry,” PenCom stated.

PenCom assured contributors and retirees that their savings remain secure and urged organised labour to continue to collaborate rather than raise “unfounded allegations” capable of creating unnecessary panic in the system.

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