PenCom Says Pension Funds Safe, Dismisses NLC Claims

By Oluwakemi Kindness

The National Pension Commission, PenCom, has reassured Nigerian workers and retirees that their pension contributions remain safe and under strict regulation, dismissing recent allegations by the Nigeria Labour Congress, NLC, as misleading.

In a letter responding to the NLC at the weekend, the Commission firmly rejects claims that workers and employers are side-lined in pension fund management or that PenCom engages in unauthorised spending.

PenCom clarified that it does not directly invest contributors’ funds, explaining that only licensed Pension Fund Administrators, PFAs, and Pension Fund Custodians, PFCs, are responsible for managing and safeguarding assets under its close regulatory watch.

The statement reads: “It is therefore incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to suggest that the funds are in any jeopardy.”

The clarification comes after a series of letters from the NLC, dated 28 July and 13 August, in which the union led by its President, Comrade Joe Ajaero, demanded the immediate inauguration of PenCom’s Governing Board and a detailed report on pension fund management.

On the issue of the governing board, the Commission maintained that the responsibility rests solely with the President and the Senate under Section 19 of the Pension Reform Act, PRA, 2014.

PenCom also reminded the NLC that it is a statutory member of the board once inaugurated, but cannot appoint a board for itself.

On spending concerns, PenCom stressed that its budget is subject to National Assembly approval in line with the Constitution, while all procurement activities comply with the Public Procurement Act 2007.

Reiterating its openness to dialogue, the Commission acknowledged the role of organised labour in shaping the Pension Reform Acts of 2004 and 2014, assuring the NLC of continued access for constructive engagements.

“The doors of the Commission have been, and would remain, open to the NLC and other social partners for inquiries and engagements on any issue of concern relating to the pension industry,” the statement adds.