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Friday, October 31, 2025

Labour pushes for 50% pension withdrawal rights

Mr Ajaero also demanded for better worker benefits and accountability.

• October 30, 2025
NLC
Nigeria Labour Congress (NLC)

The Nigerian Labour Congress (NLC) has called for an increase in the Retirement Savings Account (RSA) withdrawal limit, proposing to raise the threshold from 25 per cent to 50 per cent.

NLC president, Joe Ajaero, made the demand during a roundtable discussion with the management of the National Pension Commission (PenCom) in Abuja on Thursday.

The event had the theme, “Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners.”

Mr Ajaero explained that the proposed increase would enable workers to meet critical financial needs such as investments in agriculture, education, and healthcare, especially given the current economic challenges.

He also urged the federal government to fully constitute the PenCom Governing Board, warning that the continued absence of a complete board threatened the integrity of the Contributory Pension Scheme (CPS).

According to him, while a chairman is currently in place, the lack of a fully functional board hampers strategic oversight, delays key decisions, and undermines proper governance within such a vital institution.

“Congress is deeply concerned about the continued non constitution of the full board of the PenCom.

“In the absence of this board, how do we ensure the integrity of the commission’s actions until the board is in place,” he said.

Mr Ajaero also demanded for better worker benefits and accountability.

” Firstly, the NLC urged PenCom to leverage technology to significantly reduce the long processing time for retirees to access their entitlements, demanding payments within weeks, not months after retirement.

“Secondly, we propose a formal establishment of a standing NLC-PenCom committee to meet quarterly to proactively address workers grievances.

” Thirdly, they called for immediate regulatory action against ineffective PFAs and defaulting employers, including publishing the names of non-compliant employers and applying stiffer sanctions,” he said.

Mr Ajaero said there were concerns over the proposed amendments to the Pension Reform Act 2014 (PRA2014), that workers were not informed.

The PenCom director-general (D-G ), Omolola Oloworaran, said that the CPS was the most transformative social reform the country had ever seen, saying it had restored confidence and dignity in retirement.

The D-G said that PenCom would be driving several key reforms, including the Pension Revolution 2.0, a bold initiative aimed at expanding coverage, strengthening regulation, and enhancing service delivery.

She said that the discussion also centered on the revised Regulation of Investment of Pension Assets, designed to preserve safety and optimise returns for contributors.

Ms Oloworaran said that the micro-pension scheme had been renamed the “Personal Pension Plan.”

She said that PenCom would share updates on the proposed amendments to the PRA 2014, requesting the NLC’s input.

“The CPS can only remain strong when Nigerian workers believe in it.

“And how better to improve trust in the system than partnering with the Nigerian Labour Congress, which is closer to the people and who champion the cause of the people as well,” she said.

Ms Oloworaran, while welcoming the NLC delegation earlier, noted that “this relationship is indispensable especially as the commission prepares to intensify its regulatory activities.”

“There will be no PenCom without labour and we need labour to achieve our goals and as we go into full-drive enforcement mode.

“Labour is a reliable partner that we want to count on,” Ms Oloworaran said.

 (NAN)

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