NLC Gives Federal Government Seven Days to Return Diverted NSITF Funds

Abuja, Nigeria — August 14, 2025: The Nigeria Labour Congress (NLC) has issued a stern seven-day ultimatum to the Federal Government over alleged mismanagement and illegal diversion of funds belonging to the Nigeria Social Insurance Trust Fund (NSITF).

In a communique issued at the end of its Central Working Committee (CWC) meeting held on August 13, 2025, and signed by NLC President Joe Ajaero, the labour union accused the government of unlawfully diverting 40% of workers’ contributions from the NSITF into the national treasury as “revenue” a move the NLC says violates the NSITF Act.

The NLC warned that if the government fails to account for and return all diverted funds within seven working days, it will no longer guarantee industrial peace in the sector.

Violation of Workers’ Rights

In its statement, the NLC described the alleged diversion as a flagrant breach of the laws establishing the NSITF and a direct assault on Nigerian workers’ social protection rights.

“The NSITF belongs to the Nigerian working class and will mobilise all legitimate means to protect workers’ interests,” the communique read.

The Congress also condemned what it called the government’s cyber and media intimidation of trade unions, as well as covert moves to amend the NSITF Act in a way that would remove workers’ control and hand full authority to the government.

Constitution of PENCOM Board

Beyond the NSITF issue, the NLC also called for the immediate constitution of the National Pension Commission (PENCOM) governing board.

According to the union, the failure to constitute the PENCOM board violates the PENCOM Act and leaves pension funds entirely under government control — increasing the risk of political interference and mismanagement.

The NLC demanded:

Constitution of the PENCOM Board within seven days.
Full status report on pension funds to be submitted to the NLC within the same period.

The communique stressed that pension funds are deferred wages, not government revenue.

Zero Tolerance for Indiscipline in State Councils

In other resolutions, the NLC ratified the dissolution of its Edo State administrative council and announced the creation of a caretaker committee to manage affairs.

The Congress also vowed to enforce strict compliance with its constitution in all state councils, maintaining zero tolerance for indiscipline.

Key Demands of the NLC:

Return all diverted NSITF funds within seven working days.
Constitute PENCOM governing board immediately.
Provide full status report on pension funds.
End media intimidation of trade unions.

📌 What’s Next: With the deadline set for Thursday, August 21, 2025, all eyes are on the Federal Government’s response. Failure to comply could trigger nationwide labour unrest and possible strike actions.