PenCom Says Board Inauguration Beyond Its Control Amid NLC Concerns

The National Pension Commission (PenCom) has responded to the Nigeria Labour Congress (NLC) over its recent criticism regarding the delayed inauguration of the commission’s board, stating that the process is outside its jurisdiction. The NLC had accused PenCom of stalling the constitution of its governing board, which it claimed was affecting decision-making and proper oversight in the pension industry.

In a statement released on Thursday, PenCom clarified that the appointment and inauguration of its board members fall under the purview of the Federal Government, not the commission itself. According to the commission, while it recognizes the concerns raised by labour unions, it cannot initiate or finalize the board’s inauguration process as it is strictly an executive and legislative function.

PenCom explained that board appointments are typically made by the President and confirmed by the National Assembly, a process designed to ensure accountability and adherence to statutory requirements. The commission assured stakeholders that despite the absence of an active board, all regulatory and supervisory functions are being executed effectively by its management team in line with the Pension Reform Act.

Industry analysts have observed that while PenCom’s management has maintained stability in the sector, the absence of a governing board raises concerns about long-term policy direction, particularly in areas like pension fund investment approvals and strategic oversight. The NLC’s recent criticism underscores growing tension between labour unions and government agencies over governance issues in key sectors.

The commission reiterated that it is fully committed to safeguarding workers’ pension contributions and maintaining transparency in the industry. PenCom pointed out that all its operations remain under the scrutiny of various government oversight agencies, including the Ministry of Finance and the National Assembly committees responsible for pensions. It also emphasized that the Contributory Pension Scheme (CPS) remains robust, with pension assets steadily growing despite economic headwinds.

Stakeholders have urged the Federal Government to expedite the inauguration of the PenCom board to strengthen corporate governance in the commission. They argue that an active board provides additional oversight and input on strategic decisions, which is critical for an industry managing trillions of naira in workers’ retirement funds. Labour leaders have warned that delays in appointing a board could erode public confidence in the pension system if not addressed promptly.

PenCom, however, has reassured pension contributors that the management team continues to meet all obligations, including the timely remittance of pension contributions and payment of retirees’ benefits. The commission also stressed that ongoing initiatives to expand pension coverage to the informal sector through the Micro Pension Plan are being actively pursued, even in the absence of a governing board.

The NLC’s call for immediate board inauguration comes amid broader debates about governance in Nigeria’s regulatory agencies. Many stakeholders have noted that delays in constituting boards across various government institutions often create gaps in accountability and hinder efficient policy implementation. PenCom’s case is particularly significant given its role in safeguarding workers’ retirement savings.

Observers believe that while PenCom’s explanation absolves it of direct responsibility, the onus now lies on the Presidency and the National Assembly to fast-track the appointment and inauguration of qualified board members. Doing so, they argue, will not only address labour’s concerns but also enhance the credibility of Nigeria’s pension system.

As the conversation continues, industry players and pension contributors will be watching closely for any action from the government regarding the board’s constitution. The outcome will likely shape public perception of the administration’s commitment to transparency and good governance in the pension sector.

For now, PenCom insists it will remain focused on its core mandate of regulating and supervising the pension industry, ensuring that Nigerian workers’ retirement benefits remain secure and well-managed. The commission has urged all stakeholders, including the NLC, to continue engaging constructively with relevant authorities to ensure the speedy inauguration of the board.

 

If the Federal Government acts swiftly on this issue, it could help restore confidence among workers and unions while strengthening the overall governance framework of the pension industry.