NLC Seeks 50% Access to Pension Savings 

By Oluwakemi Kindness

The Nigeria Labour Congress (NLC) has called for a major review of Nigeria’s pension policy to allow workers access up to 50 percent of their Retirement Savings Account (RSA) balance before retirement.

NLC President, Comrade Joe Ajaero, made the call in Abuja on Thursday during an interactive session with the National Pension Commission (PenCom), saying the reform is necessary to help workers cope with the current economic challenges.

“We propose a review of the policy to increase the accessible portion from 25% to 50%, and expand the scope beyond residential mortgages to areas such as agriculture, education for children, and healthcare,” Ajaero said.

“This will make pension savings more responsive to the life-cycle needs of workers,” he added.

Ajaero stressed that the Contributory Pension Scheme (CPS) must evolve to reflect the realities of inflation, high living costs, and financial hardship faced by workers nationwide.

The labour leader expressed concern over the absence of a fully constituted PenCom board, describing it as a “governance gap” that weakens oversight and decision-making.

“While a chairman is in place, the absence of a full board hampers strategic oversight and delays critical decisions,” he said, urging President Bola Tinubu to ensure the immediate inauguration of the board.

Ajaero also urged PenCom to publish names of defaulting employers who fail to remit workers’ pension deductions, noting that many employees, both in public and private sectors, are victims of non-compliance.

He further called for faster pension benefit processing, saying delays in payments frustrate retirees and defeat the goal of social security.

“Pensioners shouldn’t have to wait endlessly to access what they worked for,” he said.

The NLC President also advocated for expanded coverage to include informal and non-structured sectors through innovative micro-pension strategies.

In response, the Director-General of PenCom, Ms Omolola Oloworaran, announced an ongoing review of the Regulation on Investment of Pension Assets to enhance fund safety and optimize returns for contributors and retirees.

“We will also discuss the revised Regulation of Investment of Pension Assets, designed to preserve safety and optimize returns for contributors and retirees,” she stated.

She explained that the review forms part of PenCom’s broader reform agenda tagged Pension Revolution 2.0, aimed at deepening trust, expanding coverage, and improving service delivery across Nigeria’s ₦18 trillion pension industry.

Oloworaran said the new initiative would focus on improving compliance, especially in the private sector, and ensuring tougher enforcement against defaulting employers.

“Despite challenges, the CPS has restored confidence and dignity to Nigerians in retirement. But we still have more to do to sustain trust and strengthen the system,” she said.

She disclosed that PenCom is also finalizing proposed amendments to the Pension Reform Act 2014 to address emerging industry issues and enhance the efficiency of pension fund administration.

To bring more Nigerians into the pension net, Dahir-Umar revealed that the Commission has rebranded the Micro Pension Scheme as the Personal Pension Plan a flexible option tailored for self-employed individuals and workers in small and medium enterprises (SMEs).

“We want every Nigerian worker formal or informal to retire with dignity, pride, and peace of mind,” she emphasized.

The DG acknowledged labour as a crucial partner in sustaining pension reforms, assuring the NLC of continuous collaboration for better regulatory outcomes.

“There will be no PenCom without labour. As we go into full enforcement mode, labour remains a reliable partner we want to count on,” she said.

Ajaero also proposed the creation of a standing NLC–PenCom Committee to meet quarterly and review policy implementation, transparency, and emerging issues in the pension sector.