FG Yields to NLC Demands on Pension and NSITF Deductions

The Nigerian government has reportedly complied with two key demands of the Nigerian Labour Congress (NLC) following its strike ultimatum.

Among the demands met are:

• The nomination of Opeyemi Agbaje as chairman of the National Pension Commission (PenCom).

• The reversal of a 40 percent deduction from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury.

As of press time, PenCom had not formally confirmed Agbaje’s appointment.

Last week, NLC President Joe Ajaero gave President Bola Ahmed Tinubu a seven-day notice, threatening to “shut down the economy” if government failed to address workers’ concerns.

The labor body had particularly opposed what it described as the diversion of workers’ funds from PenCom and NSITF into government coffers.

In a letter to the NLC dated August 16, 2025, NSITF Managing Director Oluwaseun Faleye confirmed that the contentious deductions had been stopped.

“No further deductions would be made from either contributions or investment proceeds,” the letter stated.

Faleye explained that the deductions stemmed from a Federal Ministry of Finance circular issued in December 2023, which directed a 50% automatic deduction from the internally generated revenue of all federal agencies. However, by March 2024, the Accountant-General of the Federation issued a directive halting deductions from NSITF contributions, recognizing them as statutory liabilities rather than government revenue.

Some of the funds previously deducted have already been refunded, Faleye added.

NLC Secretary Christopher Onyeka confirmed receipt of the letter, stating that the union’s executive council would deliberate before making a final decision on the planned strike.

“The contributions to NSITF are meant 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 stressed.