Hot Source*Says funds’ investment by PFAs safe, secure, refutes NLC’s allegations over breach of public procurement regulations, others
James Emejo in Abuja
The National Pension Commission (PenCom) has declared that pension contributions under the Contributory Pension Scheme (CPS) are “not in any form of jeopardy due to the strict safeguards imposed by the PRA 2014, and the extant regulations and guidelines” put in place by the commission.
The commission also noted that investment of pension funds and assets are undertaken by the licensed Pension Fund Administrators (PFAs) in accordance with the provisions of both the PRA 2014 and the Regulations on Investment of Pension Fund Assets issued by the commission.
The clarification was contained in PenCom’s response to the Nigeria Labour Congress (NLC)’s petition that accused the commission of breaching the public procurement act and spending without an approval, and endangering workers’ pension among others.
In a letter dated 28 July 2025, NLC President, Comrade Joe Ajaero accused PenCom of sidelining workers and employers in the management and investment of their pension contributions, operating without a properly inaugurated board, and engaging in unauthorised spending.
The labour union, therefore, issued a two-week ultimatum to the commission to inaugurate its board and provide a comprehensive status report on the funds.
However, the commission in a letter signed by its acting Director, Corporate Communications, Mr. Ibrahim Garba Buwai, and dated August 18, 2025, a copy seen by THISDAY, described the allegations as “incorrect, gravely misleading and surprising.”
It reassured all pension contributors and retirees that their pension contributions remained safe and secured.
PenCom explained that it does not directly invest pension funds, adding that rather, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) manage and safe-keep the investments under strict regulations and supervision.
PenCom said, “It is, therefore, incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to suggest that the funds are in any jeopardy.”
The commission also insisted that it had always operated with transparency and accountability.
On the non-inauguration of PenCom’s board, the commission noted that while Section 19 of the Pension Reform Act (PRA) 2014 provides for its establishment, the appointment of board members was strictly the prerogative of the President, subject to Senate confirmation.
PenCom reminded the NLC that by virtue of provisions of PRA 2014, the NLC remained one of the 10 institutions represented on PenCom’s Board.
In addition, PenCom said, the President has the prerogative of appointing the other six members, comprising the Chairman, the Director General and the four Executive Commissioners.
“It is clear that the NLC is well aware that it is outside the purview of PenCom to appoint a Board for itself,” PenCom further noted in its response.
The commission further assured NLC that appointment of Board members was no longer a matter of concern as the federal government had already taken steps to address the issue.
PenCom also refuted claims of unauthorised spending, explaining that the National Assembly, as provided under the Constitution, approves the commission’s budget, regardless of whether a board is in place or not.
In the letter, PenCom drew the attention of the NLC to the fact that all its procurement activities are undertaken in accordance with the Public Procurement Act 2007.
PenCom reiterated its openness to dialogue and collaboration with organised labour, reminding the NLC of its historic role in shaping the PRA 2004 and 2014
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