The Nigerian Labour Congress (NLC) has intensified calls for reform in the country’s pension system, urging the government to allow retirees to withdraw up to 50 per cent of their Retirement Savings Accounts (RSA), double the current limit of 25 percent.
NLC President, Comrade Joe Ajaero, made the appeal during a high-level roundtable discussion with officials from the National Pension Commission (PenCom) in Abuja.
The meeting, themed “Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners”, brought together labour leaders and pension regulators to explore ways of enhancing the welfare of retirees.
Ajaero stressed that increasing the withdrawal limit would provide workers with crucial financial flexibility to invest in sectors such as agriculture, education, and healthcare, particularly as many Nigerians grapple with rising living costs.
Beyond the withdrawal limit, the NLC also raised concerns over the incomplete constitution of the PenCom Governing Board, warning that the absence of a full board undermines oversight, delays critical decisions, and threatens the integrity of the contributory pension system.
“Without a fully functional board, how can we ensure transparency and accountability in the management of retirement funds?” Ajaero asked.
He also called for measures to improve the efficiency and responsiveness of the pension system, including faster processing of retirees’ benefits, stronger enforcement against non-compliant Pension Fund Administrators (PFAs) and employers, and the establishment of a quarterly NLC-PenCom committee to address grievances proactively.
Responding to the NLC’s concerns, PenCom Director-General, Mrs. Omolola Oloworaran, said the Contributory Pension Scheme (CPS) remained a transformative social reform that has restored dignity and confidence in retirement.
She highlighted ongoing initiatives under the Pension Revolution 2.0, aimed at expanding pension coverage, improving regulation, and enhancing service delivery for retirees.
Mrs. Oloworaran also confirmed that the micro-pension scheme has been rebranded the Personal Pension Plan, reflecting its renewed focus on accessibility and inclusivity.
The DG assured that PenCom would seek input from the NLC on proposed amendments to the Pension Reform Act 2014, emphasising the importance of workers’ confidence in sustaining the scheme.
“Labour plays a crucial role in ensuring compliance and supporting our enforcement initiatives,” she said, noting that collaboration with the NLC is key to building trust and strengthening the pension framework.
The NLC’s demands underscored the growing pressure on the government to make retirement savings more accessible and responsive to workers’ immediate financial needs.
