From Adanna Nnamani, Abuja
In a move seen as a major step towards resolving months of frosty relations, the Director General of the National Pension Commission (PenCom), Mrs Omolola Oloworaran, on Friday paid a courtesy visit to the President of the Nigeria Labour Congress (NLC), Joe Ajaero, pledging transparency and a new beginning.
Accompanied by members of her management team, Oloworaran said the visit to the Labour House in Abuja was to correct the missteps of the past, including previous media altercations, and to commit to a relationship that is mutually beneficial.
The DG said the board’s oversight function over the organisation (PenCom) could not be wished away, noting that the Commission is committed to transparency and information sharing.
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She assured that contributors’ funds were safe due to inbuilt safety guards, explaining that funds were not in the custody of PenCom but Pension Fund Administrators (PFAs) that manage them.
Ajaero, in his response, recalled that some of Congress’ issues with PenCom predated her appointment and revolved around the non-constitution of the board and weighty decisions taken on behalf of the board by unknown entities in violation of the Pension Reform Act.
He noted that the consequences were equally weighty, not just for contributors but for the entire philosophy behind the Contributory Pension Scheme, which previous administrations put in place to replace the collapsed Defined Benefit Scheme.
The labour leader recalled how the government ignored several complaints from the Congress, including a letter that was completely disregarded.
He expressed dismay that the Director-General chose to pick a fight, warning that taking on the NLC unjustly could prove costly, not only because the Congress sits on the board, but also because the funds in question belong to workers and not the government.
He noted that even when the DG continued sidelining the Congress, neither calling nor paying a visit, the Congress overlooked it.
However, he stressed that there were certain issues the Congress could no longer ignore, which prompted a second or even third letter. According to him, the DG chose to respond to the correspondence even though the matters raised were clearly beyond her mandate.
Among the challenges he highlighted was the ambiguous status of gratuity under the Contributory Pension Scheme (CPS). He said many workers were still confused about their entitlements regarding gratuity and urged PenCom to clarify its position.
He also raised the issue of contributors being short-changed by some PFAs. According to him, several workers have complained of discrepancies between their contributions and their pension statements, a situation he said erodes trust in the system.
Another pressing concern, Ajaero said, is the growing agitation by workers who want to return to the old Defined Benefit Scheme. He warned that unless reforms are implemented to protect contributors’ interests, more workers may reject the current scheme entirely.
He further condemned the non-unionisation of staff in PFAs, insisting that it was unacceptable in a democratic setting. According to him, workers in the pension sector deserve the right to organise and be represented like their counterparts in other industries.
Ajaero lamented the widespread problem of non-remittance of pension contributions by employers, including government agencies. He said this had left many workers in limbo and called for strict enforcement of compliance.
Perhaps most alarming, he said, is the fact that about 60 per cent of eligible Nigerian workers are yet to be captured under the pension scheme. This, he noted, is a serious indictment on the implementation of the CPS and must be urgently addressed.
He concluded by insisting that the PenCom board must be allowed to perform its statutory functions without interference or manipulation, warning that labour would not tolerate any further attempts to sideline it.
Mrs Omolola Oloworaran, who was appointed DG of PenCom on Saturday, July 13, 2024, replacing Mrs Aisha Dahir-Umar, acknowledged the issues raised and expressed willingness to partner with labour in tackling them.
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