The Nigeria Labour Congress (NLC) has urged the National Pension Commission (PenCom) to review the existing Retirement Savings Account (RSA) withdrawal policy by raising the permissible limit from 25 per cent to 50 per cent.
The NLC President, Comrade Joe Ajaero, made the appeal on Thursday in Abuja during a high-level roundtable with PenCom officials.
The dialogue, themed “Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners,” focused on strengthening pension management and addressing workers’ concerns.
Ajaero explained that the proposed increase would enable workers to access a larger portion of their savings to meet pressing financial obligations such as investment in agriculture, healthcare, and education, especially amid current economic difficulties.
He further urged the Federal Government to urgently constitute a full Governing Board for PenCom, warning that the absence of a complete board jeopardises transparency and proper oversight of the Contributory Pension Scheme (CPS).
“Congress is deeply concerned about the continued nonconstitutionality 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.
The NLC president also called for improved workers’ benefits, accountability, and efficiency in pension management.
“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.
Ajaero also expressed concern over ongoing efforts to amend the Pension Reform Act 2014 (PRA 2014), noting that workers were not adequately informed about the proposed changes.
In her response, PenCom Director-General, Mrs. Omolola Oloworaran, described the Contributory Pension Scheme as one of Nigeria’s most significant social reforms, saying it had restored confidence and dignity in retirement.
She said the commission was set to launch new initiatives under the Pension Revolution 2.0, aimed at widening coverage, tightening regulations, and improving service delivery. Oloworaran added that the revised Regulation on Investment of Pension Assets was designed to ensure contributors’ funds remained safe while maximizing returns.
The PenCom boss also disclosed that the micro-pension programme had been rebranded as the Personal Pension Plan and that stakeholders’ input, including from the NLC, would be sought on the forthcoming amendments to the PRA 2014.
“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.
Welcoming the NLC team earlier, Oloworaran emphasised the importance of continued collaboration between both institutions.
“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,” she added.
