NLC Accuses FG of Diverting 40% of Workers’ NSITF Contributions, Issues Seven-Day Ultimatum

The Nigeria Labour Congress (NLC) has accused the Federal Government of diverting 40% of workers’ contributions from the Nigeria Social Insurance Trust Fund (NSITF) into the national coffers as revenue, describing the move as a “flagrant violation” of the laws establishing the agency.

In a communique issued at the end of its Central Working Committee (CWC) meeting on Wednesday, August 13, and signed by NLC President Joe Ajaero, the union gave the government a seven working days ultimatum — starting Thursday, August 14 — to account for and return the allegedly diverted funds. The NLC warned that failure to comply would result in industrial unrest in the sector.

“The NSITF must account for and return all diverted funds within seven (7) working days from today. If at the end of these seven working days, nothing is done, NLC will no longer guarantee industrial peace in the sector,” the communique stated.

Attack on Workers’ Rights

The labour union condemned what it called an ongoing assault on workers’ social protection rights, stressing that the NSITF “belongs to the Nigerian working class” and vowing to use all legitimate means to defend workers’ interests.

The NLC also criticised the government’s alleged false claim of ownership of the NLC National Headquarters, media attacks on union leadership, and covert attempts to amend the NSITF Act in a way that would strip workers of control over the fund.

“These actions represent a direct attack on workers’ rights, hard-earned resources, and the principle of tripartite governance enshrined in international labour standards,” the statement read.

Demand for PENCOM Board

In addition, the NLC called on the government to immediately constitute the governing board of the National Pension Commission (PENCOM), saying the prolonged absence of the board violates the PENCOM Act and other laws.

The union argued that the failure to constitute the board had allowed the government to “solely superintend” over pension funds without statutory tripartite oversight, increasing the risk of mismanagement and political interference.

The NLC demanded a full status report of all pension funds within seven days, reminding the government that “pension funds are deferred wages, not state revenue.”

Internal Disciplinary Measures

On internal matters, the CWC ratified the dissolution of its Edo State administrative council, replacing it with a caretaker committee. It also vowed to enforce strict compliance with its constitution in all state councils, with zero tolerance for indiscipline.

The NLC has warned that if its demands are ignored, it will not hesitate to mobilise workers nationwide in protest.