The Nigeria Labour Congress (NLC) has accused the Federal Government of mismanagement at the Nigeria Social Insurance Trust Fund (NSITF), alleging diversion of 40% of workers’ contributions from the fund to the national coffers as revenue in flagrant violation of the statutes establishing the agency.
The NLC gave a seven working days ultimatum from Thursday, August 14, 2025, for the government to account for and return all diverted funds; failure of which the union would no longer guarantee industrial peace in the sector.
This was made known in a communique issued by the NLC at the end of its Central Working Committee (CWC) meeting, which was held on Wednesday, August 13, 2025, and signed by its President, Joe Ajaero.
NLC, in its statement, described the act as a flagrant violation of the statutes establishing the agency and an ongoing assault on workers’ social protection rights.
It affirmed that the NSITF belonged to the Nigerian working class, adding that it would mobilise all legitimate means to ensure workers’ interests were protected.
The communique partly reads, “The NSITF must account for and return all diverted funds within seven (7) working days from today.
“If at the end of these seven working days, nothing is done, NLC will no longer guarantee Industrial peace in the sector.’’
The NLC insisted that these actions constitute an attack on the rights of Nigerian workers, their hard-earned resources, and condemned the government’s resort to cyber and media bullying of trade unions.
It said, “The CWC expressed outrage at the ongoing assault on workers’ social protection rights through the Federal Government’s diversion of 40 per cent of workers’ contributions to the national coffers as ‘revenue,’ in flagrant violation of the statutes establishing the NSITF.
“Equally condemnable is the new administration’s false claim of ownership of the NLC National Headquarters, a property owned by Nigerian workers, resort to cyber and media-bullying of the trade unions and leadership, coupled with covert moves to amend the NSITF Act in a manner that would disenfranchise workers and give the government full control over the funds.
“The CWC warns that these actions represent a direct attack on workers’ rights, hard-earned resources, and the principle of tripartite governance enshrined in international labour standards.
“The Congress affirms that the NSITF belongs to the Nigerian working class and will mobilise all legitimate means to ensure workers’ interests are protected.”
The NLC also asked the Federal Government to immediately constitute the governing board of the National Pension Commission (PENCOM).
It noted that this unlawful non-constitution of the board has allowed the government to solely superintend over the pension funds contributed by workers and employers, thereby hindering the statutory tripartite oversight and increasing the risk of mismanagement and political interference.
The communique added, “It also called for the constitution of the Pension Commission (PENCOM) board within seven days in full compliance with the law, and the submission to the NLC of the full status report of the funds within the same period.
“The CWC noted with grave concern the non-constitution of the governing board of the National Pension Commission, in contravention of the PENCOM Act and other statutes. This unlawful vacuum has allowed the government to solely superintend over the pension funds contributed by workers and employers, stripping away the statutory tripartite oversight and increasing the risk of mismanagement and political interference.
“The CWC reiterates that pension funds are deferred wages, not state revenue, and demands the immediate constitution of the board in full compliance with the law.’’
The NLC also ratified the dissolution of its state administrative council in Edo State and the setting up of a caretaker committee.
It added that it would enforce strict compliance with its constitution in all state councils, with zero tolerance for indiscipline.
Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.
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*Source: [https://nairametrics.com/category/nigeria-business-news](https://nairametrics.com/category/nigeria-business-news)*