NLC pushes for 50% pension withdrawal rights

The Nigerian Labour Congress (NLC) on Thursday demanded an increase in the Retirement Savings Account (RSA) withdrawal limit from 25 percent to 50 percent.

The NLC President, Joe Ajaero, made the call during a roundtable discussion with the management of the National Pension Commission (PenCom) in Abuja.

He said such an increase would enable workers to meet critical financial needs such as investments in agriculture, education, and healthcare, especially given the current economic challenges.

He also urged the Federal Government to fully constitute the PenCom Governing Board and warned that the continued absence of a board threatened the integrity of the Contributory Pension Scheme (CPS).

Ajaero said: “Although a chairman is currently in place, the lack of a fully functional board hampers strategic oversight, delays key decisions, and undermines proper governance within such a vital institution.

“Congress is deeply concerned about the continued non-constitution of the full board of the PenCom.

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“In the absence of this board, how do we ensure the integrity of the commission’s actions until the board is in place?”

The NLC President also demanded better worker benefits and accountability.

“Firstly, 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.

“Secondly, we propose a formal establishment of a standing NLC-PenCom committee to meet quarterly to proactively address workers’ grievances.

“Thirdly, they called for immediate regulatory action against ineffective PFAs and defaulting employers, including publishing the names of non-compliant employers and applying stiffer sanctions,” he stated.

The PenCom Director-General, Mrs. Omolola Oloworaran, said the CPS was the most transformative social reform the country had ever seen, adding that it had restored confidence and dignity in retirement.

She said PenCom would be driving several key reforms, including the Pension Revolution 2.0, a bold initiative aimed at expanding coverage, strengthening regulation, and enhancing service delivery.

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