In what observers describe as a significant move toward easing months of strained relations, 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), Joe Ajaero, on Friday.
The visit, which took place at the Labour House in Abuja, was presented as a commitment to transparency and a chance to rebuild trust between both parties.
Accompanied by her senior management team, Oloworaran explained that the engagement was aimed at correcting mistakes of the past, including previous clashes that played out in the media. She assured that her leadership was determined to foster a relationship built on mutual respect and cooperation.
The DG emphasized that the oversight responsibilities of the PenCom board remain critical and could not be disregarded. She pledged that under her leadership, the Commission would operate with openness and provide regular access to information.
Oloworaran further reassured contributors that their pension funds remain safe, stressing that the Commission itself does not hold the money. Instead, she explained, the funds are managed by the Pension Fund Administrators (PFAs), with built-in safeguards to protect workers’ contributions.
Responding, Ajaero recalled that some of the disagreements between Congress and PenCom long preceded Oloworaran’s appointment. He pointed out that the absence of a properly constituted board and the controversial decisions made by unidentified individuals in its place violated the PenCom Act. He argued that the fallout from these decisions went beyond contributors, striking at the core of the Contributory Pension Scheme, which had been created to replace the collapsed Defined Benefit Scheme.
The labour leader further lamented that several of the NLC’s complaints were ignored by previous administrations, including a letter that he said was dismissed outright. He expressed concern that instead of fostering dialogue, the PenCom leadership at the time appeared to choose confrontation, warning that such a stance could have serious consequences.
Ajaero reminded Oloworaran that the NLC is represented on the PenCom board and that the pension funds belong to workers, not the government. He noted that despite the DG’s earlier reluctance to engage with the Congress, neither calling nor visiting, the NLC chose to overlook it. However, he stressed that certain pressing issues had forced the Congress to send follow-up letters, to which Oloworaran eventually responded, even though some of the concerns were beyond her immediate authority.
Among the issues raised by the labour leader was the unclear position of gratuity under the Contributory Pension Scheme (CPS). According to him, workers remain uncertain about their entitlements, a gap that PenCom must address.
He also drew attention to cases of contributors being allegedly shortchanged by some PFAs, noting that workers had reported discrepancies between their contributions and their pension statements. Such cases, he argued, have led to dwindling confidence in the system.
Another growing concern, Ajaero observed, is the increasing agitation among workers to abandon the CPS and return to the old Defined Benefit Scheme. He warned that without reforms that prioritize workers’ interests, the scheme risked losing credibility entirely.
Ajaero further condemned the refusal to allow unionization of employees in PFAs, insisting that in a democratic society, such practices are unacceptable. He maintained that pension sector workers must enjoy the same right to unionize as employees in other sectors.
The NLC President also criticized the widespread non-remittance of pension deductions by employers, including some government agencies. He described this as a serious injustice to workers and called for stronger enforcement mechanisms.
Perhaps most troubling, Ajaero noted, is that nearly 60 percent of Nigerian workers eligible for the CPS remain outside the scheme. He argued that this glaring shortfall highlights deep flaws in implementation and urged urgent corrective measures.
He concluded his remarks by insisting that the PenCom board must be allowed to function as mandated by law, free from undue interference. Any attempt to sideline the board, he warned, would not be tolerated by labour.
Mrs. Omolola Oloworaran, who assumed office as DG of PenCom on July 13, 2024, following the exit of Mrs. Aisha Dahir-Umar, acknowledged the weight of the concerns raised by the NLC. She expressed readiness to work closely with labour to address the challenges and chart a new course for the pension sector.
What you should know
Omolola Oloworaran became the Director General of PenCom in July 2024, inheriting longstanding tensions between the Commission and the Nigeria Labour Congress.
Her recent visit to NLC President Joe Ajaero signals a bid to mend relations, reassure workers about the safety of their pension funds, and tackle persistent issues such as non-remittance, unclear gratuity provisions, and weak trust in the current pension scheme.
