Joy Agwunobi
The National Pension Commission (PenCom) has dismissed recent allegations by the Nigeria Labour Congress (NLC) regarding the management of workers’ pension funds and the alleged absence of a governing board, describing the claims as “incorrect and gravely misleading.”
NLC President, Joe Ajaero, had accused the commission of sidelining workers and employers in decisions on pension investments, operating without a properly constituted board, and engaging in unauthorised spending. The labour union, in a letter dated August 13 and signed after a meeting of its Central Working Committee (CWC), gave PenCom a two-week ultimatum to inaugurate its board and publish a comprehensive report on the state of pension funds.
In its response, contained in a letter signed by Ibrahim Buwai, acting director of Corporate Communications, PenCom assured contributors that pension assets remain safe and well protected under the regulatory framework.
The commission clarified that it does not directly invest pension funds but rather oversees licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), who manage and safeguard the assets under strict supervision.
“It is incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to indicate that the funds are in any jeopardy,” PenCom stated, adding that the NLC’s allegations suggested “a possible sinister motive” given the commission’s established record of transparency and accountability.
On the issue of board inauguration, PenCom stressed that it has no authority to appoint its own governing board. Citing Section 19 of the Pension Reform Act (PRA) 2014, the commission explained that while the law provides for a board, its composition is the exclusive prerogative of the President, subject to confirmation by the Senate.
The commission further reminded the NLC that the union itself is one of the 10 statutory representatives on the board once constituted, alongside six presidential nominees including the Chairman, the Director General, and four Executive Commissioners.
“It is clear that the NLC is well aware that it is outside the purview of PenCom to appoint a board for itself,” the statement said, assuring that the Federal Government has already taken steps toward addressing the matter.
Addressing the NLC’s claims of unauthorised spending, PenCom explained that its budgetary processes remain subject to the approval of the National Assembly in line with constitutional provisions. It emphasised that all procurement activities are carried out in strict compliance with the Public Procurement Act of 2007.
PenCom reiterated its commitment to transparency, accountability, and the protection of pension contributors’ funds, urging stakeholders to remain assured of the integrity of the pension system.
