In a move to reset strained relations and address deep-rooted issues in Nigeria’s pension administration, the Director General of the National Pension Commission (PenCom), Mrs Omolola Oloworaran, paid a courtesy visit to the President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, at the Labour House in Abuja.
The meeting, which took place recently, aimed to reconcile the long-standing rift between the Commission and the NLC regarding the administration of the Contributory Pension Scheme (CPS).
Speaking during the visit, Mrs Oloworaran acknowledged past tensions and missteps, stating that her mission was to foster dialogue and rebuild trust with the country’s foremost labour organisation.
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“This visit is about correcting past missteps, including the public exchanges that should not have occurred, and forging a mutually beneficial partnership with the NLC,” the PenCom DG said.
Appointed in July 2024, Oloworaran’s tenure began amidst lingering discontent from labour groups, many of whom have accused the Commission of operating with opacity and flouting its statutory responsibilities.
However, the new DG reiterated PenCom’s commitment to “transparency, accountability, and stakeholder engagement,” assuring workers that their pension funds were safe, well-managed, and insulated from political interference.
“Contributors’ funds are held by Pension Fund Administrators (PFAs), not PenCom itself, and are protected by strict regulatory safeguards. PenCom is ready to provide information on everything we have done, as exemplified by our information-sharing in the public domain,” she added.
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In response, Comrade Ajaero welcomed the Commission’s peace overture but did not mince words about the NLC’s longstanding grievances. He noted that many of the concerns predated Oloworaran’s appointment but required urgent attention to restore worker confidence in the pension system.
“The Commission’s failure to constitute its board and the alleged actions taken by ‘unknown entities’ in its absence are violations of the PenCom Act and undermine the integrity of the Contributory Pension Scheme,” Ajaero said.
“PenCom previously elected to pick up a fight with Nigerian workers. That is a costly venture. The pension funds belong to workers, not the government.”
Despite his stern remarks, the NLC President expressed optimism about a new chapter of collaboration, identifying several key areas requiring reform. These include:
Persistent ambiguities around gratuity under the Contributory Pension Scheme (CPS);
Alleged shortchanging of contributors by PFAs;
Rising agitations for a return to the Defined Benefit Scheme;
Lack of unionisation within PFAs;
Rampant non-remittance of pension contributions by employers, including government bodies;
Urgent need to bring the estimated 60 per cent of uncovered workers into the pension net.
The long-overdue activation of PenCom’s governing board to perform its statutory functions.
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Both parties expressed commitment to sustained dialogue in tackling these systemic challenges. The DG’s visit marks a strategic attempt to ease labour tensions, restore confidence in the Contributory Pension Scheme, and deepen engagement with stakeholders.
Oloworaran, who replaced former DG Mrs Aisha Dahir-Umar on 13 July 2024, faces mounting pressure to reform the regulatory landscape and win over sceptical labour unions.
The NLC-PenCom rapprochement could prove vital to stabilising Nigeria’s pension industry, which manages trillions of naira in retirement savings for millions of workers.
