Pension, NSITF funds: NLC meets as strike notice expires

By Victor AhiumaYoung

Nigeria Labour Congress, NLC, leaders will meet today to review their seven-day strike notice to the federal government, which expires on Thursday, August 28.

In  the ultimatum, NLC demanded the refund of allegedly diverted Nigeria Social Insurance Trust Fund, NSITF, funds and the constitution of board of the National Pension Commission, PenCom, or risk nationwide industrial action.

Recall that the Nigeria Employers’ Consultative Association, NECA, had last week, given tacit support to NLC’s action, saying “everyone has been pushed to the wall.

‘’Unfortunately, employers cannot go on strike, but we are deeply invested in ensuring that the right thing is done, simply by respecting the Acts.”

Already, NSITF management has admitted that 50 per cent of workers’ contributions, under the Employees’ Compensation Scheme, ECS, had been deducted by the federal ministry of finance.

It, however, disclosed that part of the funds had been refunded, with efforts ongoing to recover the balance.

President Bola Tinubu has also appointed Mr Opeyemi Agbaje as Chairman of the PenCom Board, a development observers described as a step toward meeting the demands of the NLC and NECA.

Vanguard gathered that the National Administrative Council, NAC, the body of elected NLC national officials and secretariat staff, will meet today to review the situation and determine the next line of action.

An NLC official told Vanguard yesterday: “Yes, members of NAC are meeting on Monday (today) to review developments since the seven-day ultimatum was issued last Thursday.

‘’We have acknowledged the NSITF managing director’s letter admitting the deductions, noting that some refunds have been made, while discussions continue to recover the balance.”

“We have also taken note of the appointment of the PenCom Board Chairman. Monday’s NAC meeting will review all these issues to decide whether they are enough to suspend the ultimatum or not. That is essentially why NAC is meeting.”

Confirmation of deduction

In a letter dated August 16, 2025, addressed to NLC President, Joe Ajaero, NSITF Managing Director/Chief Executive, Mr. Oluwaseun Faleye, confirmed that the deductions were made based on a Ministry of Finance circular.

According to him: “You will recall that the Federal Ministry of Finance circular (Ref: FMFCME/OTHERS/IGR/CFR/21/2021) dated December 28, 2023, introduced a policy of automatic deduction of 50% from the internally generated revenue of all Federal Government-owned enterprises.

“The Fund has consistently engaged with the Ministry of Finance, the Budget Office of the Federation, the Office of the Accountant-General of the Federation, and the Fiscal Responsibility Commission, arguing that the circular overlooked the peculiarities of the Employees’ Compensation Act 2010. Within the context of our mandate and obligations to subscribers under the law, such collections should be treated as liabilities rather than revenues.”

The post Pension, NSITF funds: NLC meets as strike notice expires appeared first on Vanguard News.