NLC demands 50% pension withdrawal, criticizes lack of full PenCom governing board

The Nigerian Labour Congress (NLC), led by President Joe Ajaero, has formally demanded a significant increase in the amount workers can withdraw from their Retirement Savings Account (RSA) upon retirement.

Speaking at a roundtable with the management of the National Pension Commission (PenCom) in Abuja on Thursday, Ajaero called for the withdrawal limit to be raised from the current 25 percent to 50 percent.

The NLC’s push for a 50% withdrawal right is primarily motivated by the need for workers to address critical financial needs amid the current economic challenges.

According to Ajaero, this increase would enable essential investments in areas such as agriculture, education, and healthcare.

Beyond the withdrawal limit, the NLC President expressed deep concern over the continued non-constitution of the full PenCom Governing Board.

Ajaero warned that the lack of a fully functional board—despite a chairman being in place—threatens the integrity of the Contributory Pension Scheme (CPS) by hampering strategic oversight, delaying key decisions, and undermining proper governance.

He stressed that a full board is essential to ensure the integrity of the commission’s actions.

The NLC also presented several demands focused on improving worker benefits and accountability.

Firstly, they urged PenCom to leverage technology to significantly shorten the processing time for retirees to access their entitlements, demanding payments be made within weeks, not months, after retirement.

Secondly, the NLC proposed the 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 Pension Fund Administrators (PFAs) and defaulting employers, including publishing the names of non-compliant employers and applying stiffer sanctions.

In response, Mrs. Omolola Oloworaran, the PenCom Director-General, acknowledged the significance of the CPS, describing it as the most transformative social reform the country has ever seen, which has restored confidence and dignity in retirement.

She highlighted that PenCom is committed to driving several key reforms, including the Pension Revolution 2.0—an initiative aimed at expanding coverage, strengthening regulation, and enhancing service delivery.