The Nigerian Labour Congress (NLC) has urged the Federal Government to raise the Retirement Savings Account (RSA) withdrawal limit from 25% to 50%, citing rising living costs and growing financial pressure on Nigerian workers.
NLC President, Comrade Joe Ajaero, made the call during a roundtable discussion with the management of the National Pension Commission (PenCom) in Abuja on Thursday.
The event was themed “Consolidating the Gains of the Contributory Pension Scheme through Collaboration with Social Partners.”
Ajaero explained that the proposed increase would help workers access more funds to meet critical needs such as investments in agriculture, education, and healthcare, particularly in the face of ongoing economic challenges.
“Congress is deeply concerned about the continued non constitution of the full board of the PenCom. In the absence of this board, how do we ensure the integrity of the commission’s actions until the board is in place?” he said
The labour leader also called on the Federal Government to fully constitute the PenCom Governing Board, stressing that the absence of a complete board was undermining transparency and governance in the pension sector.
According to him, while a Chairman is currently in place, the lack of a full board has slowed strategic decisions and weakened oversight. He warned that without a properly constituted board, the integrity of the Contributory Pension Scheme (CPS) could be compromised.
Ajaero further demanded reforms to improve retirees’ access to their benefits. He urged PenCom to leverage technology to shorten the time it takes for retirees to receive payments.
“The NLC urged PenCom to leverage technology to significantly reduce the long processing time for retirees to access their entitlements, demanding payments within weeks, not months after retirement,” he said.
The NLC president expressed concern that workers had not been adequately informed about the proposed amendments to the Pension Reform Act 2014 (PRA 2014). He urged PenCom to ensure transparency and inclusion in discussions affecting workers’ retirement savings.
Responding, PenCom Director-General, Mrs Omolola Oloworaran, described the Contributory Pension Scheme as one of Nigeria’s most transformative social reforms, saying it had restored confidence and dignity in retirement.
She stated that PenCom was implementing a series of reforms under a new initiative called Pension Revolution 2.0, aimed at expanding coverage, strengthening regulation, and enhancing service delivery.
“The CPS can only remain strong when Nigerian workers believe in it. And how better to improve trust in the system than partnering with the Nigerian Labour Congress, which is closer to the people and champions the cause of the people as well,” she stated
She revealed that the micro-pension scheme had been renamed the Personal Pension Plan, adding that PenCom would soon share updates on the proposed PRA 2014 amendments and seek NLC’s input.
Oloworaran stressed the need for stronger collaboration with the NLC, describing labour as a key partner in achieving PenCom’s regulatory and enforcement goals.
The push by the NLC comes at a time when Nigerian workers are grappling with rising inflation, high living costs, and growing financial insecurity. Pension access and management have become critical concerns for retirees and contributors under the Contributory Pension Scheme.
The push by the NLC comes at a time when Nigerian workers are grappling with rising inflation, high living costs, and growing financial insecurity. Pension access and management have become critical concerns for retirees and contributors under the Contributory Pension Scheme.
In recent months, PenCom has announced several policy reviews aimed at modernising the pension system, including efforts to expand coverage to informal workers through the Personal Pension Plan.