Ajaero urges reforms to ease retirees’ access to benefits amid rising inflation and economic hardship…..
The Nigeria Labour Congress (NLC) has called on the Federal Government to raise the Retirement Savings Account (RSA) withdrawal limit from 25 per cent to 50 per cent, citing the rising cost of living and growing financial pressure on Nigerian workers.
NLC President, Joe Ajaero, made the appeal during a roundtable discussion with the management of the National Pension Commission (PenCom) in Abuja on Thursday. The event, themed “Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners,” brought together labour leaders and regulators to discuss ongoing pension reforms.
Workers Need More Access to Funds
Ajaero explained that increasing the withdrawal limit would allow workers to access more of their savings for pressing needs such as investments in agriculture, education, healthcare, and other essential expenses, particularly amid Nigeria’s harsh economic realities.
“Workers are struggling under intense economic pressure,” Ajaero said. “Raising the RSA withdrawal limit to 50 per cent will provide immediate relief and help many invest productively.”
NLC Seeks Full Constitution of PenCom Board
The labour leader also demanded the full constitution of the PenCom Governing Board, warning that the absence of a complete board undermines transparency and effective governance in the pension industry.
“Congress is deeply concerned about the continued non-constitution of the full board of PenCom,” Ajaero said. “In the absence of this board, how do we ensure the integrity of the Commission’s actions until the board is in place?”
He noted that while the Chairman of the Commission is currently in office, the lack of a full board has stalled major policy decisions and weakened institutional oversight.
Faster Pension Payments and Stronger Enforcement
Ajaero urged PenCom to leverage technology to reduce the long delays in pension payments, insisting that retirees should receive their benefits within weeks, not months, after leaving service.
He also proposed the creation of a standing NLC–PenCom committee to meet quarterly, resolve workers’ grievances, and monitor ongoing reforms.
Additionally, he called on PenCom to sanction defaulting employers and underperforming Pension Fund Administrators (PFAs), urging the publication of non-compliant companies to improve transparency and accountability.
Concerns Over Pension Reform Act Amendments
The NLC president expressed concern that workers were not adequately informed about proposed amendments to the Pension Reform Act 2014 (PRA 2014). He urged PenCom to ensure consultation and inclusion in all policy discussions that affect workers’ retirement savings.
PenCom Promises Broader Reforms and Collaboration
In response, PenCom Director-General, Omolola Oloworaran, described the Contributory Pension Scheme (CPS) as one of Nigeria’s most impactful social reforms, restoring dignity and security to retirees.
She revealed that the Commission is implementing a new initiative, “Pension Revolution 2.0,” aimed at expanding coverage, strengthening regulation, and improving service delivery.
“The CPS can only remain strong when Nigerian workers believe in it,” Oloworaran said. “And how better to improve trust in the system than partnering with the NLC, which champions the cause of the people?”
She also announced that the Micro Pension Scheme had been renamed the Personal Pension Plan, adding that updates on the proposed PRA 2014 amendments would soon be shared with stakeholders, including the NLC.
Oloworaran stressed the need for stronger collaboration with the NLC, describing labour as a critical partner in achieving the Commission’s regulatory and enforcement goals.
Context: Rising Inflation and Worker Struggles
The NLC’s demand comes amid rising inflation, high living costs, and increasing financial insecurity among Nigerian workers. Pension access and management have become central issues for retirees and contributors under the CPS.
In recent months, PenCom has introduced several policy reforms aimed at modernising Nigeria’s pension system, including efforts to extend coverage to informal sector workers through the Personal Pension Plan.
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