By Esther Ososanya
The federal government has bowed to pressure from organised labour by addressing two major demands of the Nigerian Labour Congress (NLC), barely days after the union threatened to shut down the economy with a nationwide strike.
At the centre of the dispute was the controversial deduction of workers’ contributions from the Nigeria Social Insurance Trust Fund (NSITF) and the delayed constitution of the National Pension Commission (PenCom) board.
In a letter dated August 16, 2025, and addressed to the NLC, NSITF Managing Director, Oluwaseun Faleye, confirmed that deductions from employers’ contributions and investment proceeds into the federation account had been stopped.
“No further deductions would be made from either contributions or investment proceeds,” the letter stated, adding that some previously deducted funds have already been reversed.
Faleye explained that the deductions stemmed from a December 2023 circular by the Federal Ministry of Finance, which mandated a 50 percent sweep of revenues generated by federal agencies. He, however, clarified that workers’ contributions under the NSITF are statutory liabilities and not government revenue, stressing that they are no longer subject to such deductions following a directive from the Accountant-General of the Federation in March 2024.
The NSITF chief further disclosed that recent meetings between the Minister of Finance and the Director-General of the Budget Office in August 2025 secured firm commitments that workers’ funds will no longer be touched.
Appointment at PenCom
On the second demand, government sources confirmed that President Bola Ahmed Tinubu approved the appointment of financial expert Opeyemi Agbaje as chairman of the PenCom board. However, the pension regulator has yet to issue an official confirmation as of press time.
Reacting to the development, NLC Secretary, Christopher Onyeka, confirmed that the union received NSITF’s correspondence and would review it before making a final decision on its planned strike.
“The contributions to NSITF are intended to compensate workers in the event of injury. They are not government revenue and should not be used for fiscal purposes. Protecting these funds is our responsibility,” Onyeka said.
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The NLC had last week issued a seven-day ultimatum to President Tinubu, warning of a nationwide industrial action unless the federal government reversed the diversion of workers’ funds and reconstituted the PenCom board.
With government’s latest concessions, the ball is now in labour’s court as Nigerians await the outcome of the NLC’s executive council meeting scheduled for the week.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
