The Nigeria Labour Congress (NLC) says it is not opposed to the proposed increase in workers’ pension contributions but wants the government to first review wages to cushion the impact of additional deductions on employees.
NLC Deputy President, Prince Adewale Adeyanju, stated this while speaking on the Ask the Expert segment of Trade FM’s Breakfast Business Briefing, where he discussed the proposed adjustment to pension contributions and its implications for workers.
Adeyanju said increased pension contributions could provide better financial security for workers in retirement, but warned that the policy could worsen the financial burden on low-income earners if implemented without a corresponding salary increase.
He questioned how workers earning the current ₦70,000 minimum wage would cope with higher pension deductions amid rising costs of food, transportation, housing and other essential needs.
According to him, workers should not be asked to contribute more from inadequate salaries while some employers and state governments allegedly fail to remit existing pension contributions.
The labour leader called for a tripartite engagement involving the government, employers and organised labour before the proposed increase is implemented.
He said such discussions would provide an opportunity to agree on a fair contribution structure and ensure that employers fulfil their responsibilities under the pension system.
Adeyanju also urged the National Pension Commission (PenCom) to strengthen its regulatory oversight and sanction employers and pension managers that fail to remit workers’ contributions or properly manage pension funds.
He alleged that some workers have had pension deductions made from their salaries for years without the corresponding funds being properly remitted, describing the situation as unacceptable.
The NLC deputy president also raised concerns over pensioners who have waited for prolonged periods to receive their entitlements, citing former maritime-sector workers whom he said had remained unpaid for decades.
He stressed that workers who contribute throughout their active years deserve to receive their pension benefits promptly after retirement.
Adeyanju, however, advised workers not to abandon the pension scheme because of existing challenges, noting that retirement savings remain important for financial security in old age.
He said pension funds are invested, with workers expected to benefit from returns generated from such investments, but added that greater transparency and effective regulation are needed to restore confidence in the system.
The labour leader further called for stronger enforcement against employers who allegedly exclude some workers from pension registration or fail to meet their contribution obligations.
He maintained that the proposed pension increase should be accompanied by improved wages and broader welfare measures, arguing that the current minimum wage is inadequate for many Nigerian families.
Adeyanju therefore urged the Federal Government to engage organised labour and employers in meaningful negotiations, warning that increasing pension deductions without addressing workers’ purchasing power could further strain households already grappling with the high cost of living.
