PenCom Assures Safety of Pension Funds
…Dismisses NLC’s Allegations
By Patience Ikpeme
The National Pension Commission (PenCom) has rejected recent allegations by the Nigeria Labour Congress (NLC) concerning the management of workers’ pension assets and the absence of a governing board, describing the claims as “incorrect and misleading.”
In a statement issued by its Acting Director of Corporate Communications, Ibrahim Garba Buwai, the commission assured contributors that the nation’s pension assets remain “safe and secure” under the regulatory framework of the Contributory Pension Scheme (CPS).
According to PenCom, it does not directly invest pension funds but provides oversight for licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) that are legally mandated to manage and safeguard the assets.
“It is therefore incorrect to suggest that contributors and employers are kept in the dark,” the statement read. “There is no evidence that funds are in jeopardy. The allegations appear unfounded as the commission operates transparently and in line with the law.”
Responding to NLC’s concerns over the non-inauguration of PenCom’s governing board, the commission explained that while the Pension Reform Act (PRA) 2014 provides for a board, the responsibility of appointing members rests solely with the President and is subject to confirmation by the Senate. It further stated that the NLC itself is among the 10 institutional representatives on the board once constituted.
On the matter of alleged unauthorised spending, PenCom clarified that all budgets of the commission are appropriated by the National Assembly, even when a governing board is not in place. It stressed that its procurement and financial operations strictly comply with the provisions of the Public Procurement Act 2007.
The commission also expressed its readiness to engage with organised labour, acknowledging the NLC’s long-standing role in shaping pension reforms in Nigeria. It called for sustained collaboration to strengthen the pension industry as the Federal Government works toward resolving the issue of pending board appointments.
NLC President, Joe Ajaero, had in recent weeks accused PenCom of excluding workers and employers from decisions regarding pension fund investments, operating without a board, and engaging in spending outside the law. The labour body issued a two-week ultimatum for the commission to inaugurate its board and publish a detailed status report on pension contributions.
The NLC restated its demands in a follow-up letter dated August 13, 2025, insisting that workers’ interests must be protected and their representatives given a stronger voice in the management of retirement savings.
