The Federal Government and the Nigeria Labour Congress have successfully resolved a contentious dispute over workers’ pension funds, following a high-stakes meeting with the National Pension Commission on August 29, 2025.

The resolution averts a threatened nationwide strike, signaling a significant step toward stabilizing Nigeria’s pension sector.

The meeting, hosted by PENCOM Director-General Omolola Oloworaran, marked her first official engagement with the NLC since assuming office in July 2024, according to a statement by the NLC on Sunday.

The dialogue addressed mounting concerns raised by the NLC, which had issued a seven-day ultimatum on August 13, 2025, demanding the constitution of PENCOM’s governing board, the return of allegedly diverted workers’ funds from the Nigeria Social Insurance Trust Fund, and a comprehensive report on pension fund status, according to The Punch.

PENCOM firmly denied allegations of missing funds, with Acting Director of Corporate Communications Ibrahim Buwai previously clarifying that workers’ pensions remain secure.

Buwai also noted that the appointment of PENCOM’s governing board falls under the Federal Government’s authority.

“Pension funds are the exclusive property of Nigerian workers and must be managed with utmost transparency and accountability,” NLC President Joe Ajaero said at the meeting.

The labour leader expressed concern that PENCOM is operating without a statutory board, emphasizing workers’ right to transparency in the management of their funds.

The NLC highlighted ongoing difficulties retirees and near-retirees face in accessing their benefits, calling on PENCOM to strengthen oversight of Pension Fund Administrators, ensure compliance, and impose sanctions where needed.

In response, PENCOM DG Omolola Oloworaran called for a fresh chapter of engagement with the NLC, apologizing for past media disputes and for not formally meeting or engaging the Congress upon taking office. She committed to a transparent, open, and collaborative approach, pledging that PENCOM would no longer handle disagreements through the media but instead establish continuous, structured dialogue with the NLC.

Oloworaran also announced plans to boost public accountability via PENCOM’s dashboard, providing real-time updates on pension matters. PENCOM will now send regular reports to the NLC and develop a clear framework for sustained engagement, emphasizing trust, harmony, and transparency.

The DG recognized the NLC’s vital role as workers’ representatives on the PENCOM board and sought their continued support in strengthening oversight of PFAs. Both parties agreed to work closely on compliance and enforcement to ensure the protection of workers’ contributions.

The resolution follows weeks of escalating tensions, with the NLC’s Central Working Committee warning of industrial action if demands were unmet.

The agreement is expected to bolster confidence in Nigeria’s pension system and strengthen collaboration between the government, PENCOM, and labour unions.