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 increasing financial pressure on Nigerian workers.
NLC President, Comrade 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,” focused on strengthening the pension system and improving workers’ welfare.
Ajaero explained that the proposed increase would enable workers to meet pressing financial needs and invest in key areas such as agriculture, education, and healthcare, particularly amid ongoing economic challenges.
He also raised concerns over the non-constitution of PenCom’s full governing board, warning that the absence of a complete board undermines transparency and accountability.
“Congress is deeply concerned about the continued non-constitution of the full board of PenCom. In the absence of this board, how do we ensure the integrity of the commission’s actions until it is in place?” he said.
Ajaero urged the Federal Government to immediately constitute the full PenCom Governing Board, stressing that the current partial structure has slowed strategic decision-making and weakened oversight. He also demanded reforms to simplify access to retirees’ benefits, calling on PenCom to adopt technology that would shorten payment processing time to a few weeks instead of months after retirement.
The NLC president further proposed the creation of a standing NLC–PenCom committee to meet quarterly to address workers’ grievances and monitor the implementation of reforms.
He also called for tougher action against defaulting employers and ineffective Pension Fund Administrators (PFAs), including naming and shaming non-compliant companies and imposing stiffer penalties.
Ajaero expressed concern that Nigerian workers had not been adequately informed about the proposed amendments to the Pension Reform Act 2014 (PRA 2014) and urged PenCom to ensure transparency and inclusion in the amendment process.
Responding, PenCom Director-General, Mrs. Omolola Oloworaran, described the Contributory Pension Scheme (CPS) as one of Nigeria’s most transformative social reforms, noting that it had restored confidence and dignity in retirement.
She said the commission was implementing a new reform agenda tagged “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. Partnering with the Nigerian Labour Congress, which represents the people, is essential to strengthening trust and accountability in the system,” she stated.
Oloworaran revealed that the Micro Pension Scheme had been renamed the Personal Pension Plan and that PenCom would soon provide updates on the proposed PRA 2014 amendments, assuring that the NLC’s input would be sought.
She emphasised the need for deeper collaboration with labour unions, describing the NLC as a key partner in achieving PenCom’s regulatory and enforcement goals.
The NLC’s demands come at a time when Nigerian workers are struggling with rising inflation, high living costs, and increasing financial insecurity. Pension access and management remain pressing issues for both retirees and contributors under the Contributory Pension Scheme.
In recent months, PenCom has announced several policy initiatives aimed at modernising the pension system, including efforts to expand coverage to informal sector workers through the Personal Pension Plan.
