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Home»News»NLC Threatens Industrial Action Over Alleged Diversion Of Workers’ Contributions To NSITF As ‘Revenue’, Governance Vacuum At PenCom
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NLC Threatens Industrial Action Over Alleged Diversion Of Workers’ Contributions To NSITF As ‘Revenue’, Governance Vacuum At PenCom

National RecordBy National RecordAugust 14, 2025Updated:August 14, 2025No Comments3 Mins Read
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  • Gives 7-Day Ultimatum To Address Demands

THE NIGERIA Labour Congress (NLC) has issued a stern warning to the Federal Government (FG) over alleged diversion of 40% of workers’ contributions to the Nigeria Social Insurance Trust Fund (NSITF) into national coffers as “revenue.”

In a communiqué released after its Central Working Committee (CWC) meeting on Wednesday at an undisclosed venue, and signed by it President, Comrade Joe Ajaero, the NLC described FG’s action as a flagrant violation of the NSITF Act and an assault on workers’ social protection rights.

The foremost labour centre in Nigeria also condemned the government’s false claim of ownership of the Paschal Bafyau Labour House National Headquarters of NLC, cyberbullying of union leaders, and covert moves to amend the NSITF Act to disenfranchise workers.

The NLC vowed to explore all legitimate means to protect workers’ interests, as it demanded the immediate return of the diverted funds within seven working days. “The NSITF belongs to the Nigerian working class, and we will mobilise all legitimate means to protect workers’ interests,” the communiqué asserted.

The organisation threatened that failure to comply with its demand would result in the mobilisation of workers nationwide to resist what it described as the expropriation of NSITF.

Worsening Economic Crisis

The NLC also expressed deep concern over Nigeria’s worsening economic crisis, characterised by skyrocketing inflation, mass unemployment, hunger, insecurity, and the collapse of public services.

While blaming the myriad of challenges on the Tinubu-led government’s full-throttle neoliberal policies that prioritise elite interests over the welfare of ordinary citizens, the NLC called for a shift to a people-centred development model, including public ownership of strategic sectors, living wages, industrial revival, and robust social protection programmes to lift millions out of poverty.

Governance Vacuum in PenCom

The NLC also raised alarm over the non-constitution of the Governing Board of the National Pension Commission (PenCom), which it said violates the PenCom Act.

The absence of the PenCom Board, the NLC noted, has allowed the government to unilaterally oversee pension funds – contributions made by workers and employers – without the statutory tripartite oversight. This, the NLC argued, exposes the funds to mismanagement and political interference.

Describing pension funds as “deferred wages, not state revenue,” the Congress, as the NLC is fondly called by workers and unionists, demanded the immediate constitution of the board in compliance with the law. It also demanded of PenCom to submit a full status report on pension funds within seven days or face industrial unrest.

Edo State NLC Leadership Crisis

According to the communiqué, the CWC ratified the dissolution of the Edo State Council’s Administrative Committee over allegations of unethical conduct, anti-union activities, and violations of the NLC Constitution.

The NLC therefore announced the constitution of a caretaker committee to manage the council’s affairs pending fresh elections, as it reaffirms its commitment to discipline, internal democracy, and accountability within its ranks.

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7-day ultimatum address demands diversion governance vacuum industrial action NLC NSITF PenCom revenue threatens workers' contributions
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