FG Yields to NLC’s Demands as Strike Deadline Looms
FG Yields to NLC’s Demands as Strike Deadline Looms
The Federal Government has reportedly moved to address two major demands presented by the Nigeria Labour Congress (NLC), just days after the union threatened nationwide industrial action.
The NLC had insisted on the reversal of the 40 percent deduction from the Nigeria Social Insurance Trust Fund (NSITF) and the appointment of a substantive chairman for the National Pension Commission (PenCom). Reports now indicate that government authorities have acted on both requests, although PenCom has yet to formally confirm the appointment of Opeyemi Agbaje as chairman.
Last week, NLC President, Joe Ajaero, issued a seven-day ultimatum to President Bola Ahmed Tinubu, warning of a possible shutdown of the economy if the concerns were not addressed.
In a letter dated August 16, 2025, and signed by NSITF Managing Director, Oluwaseun Faleye, the union was assured that no further deductions would be taken from workers’ contributions or investment proceeds. The correspondence explained that while a 2023 Ministry of Finance circular had introduced a 50 percent deduction policy on revenues of federal agencies, the directive no longer applies to NSITF contributions following an intervention by the Accountant-General of the Federation in March 2024. Some previously deducted funds, the letter noted, have already been refunded.
The NSITF further disclosed that top government officials, including the Minister of Finance and the Director-General of the Budget Office, reaffirmed in meetings held earlier this month that the deductions would not continue.
Confirming receipt of the letter, NLC Secretary, Christopher Onyeka, said the union’s executive council would deliberate on the matter before reaching a decision on the proposed strike.
He emphasized that the NSITF contributions are meant strictly for the welfare of workers in cases of injury and cannot be treated as government revenue.
“Safeguarding these funds is our duty,” Onyeka stated.
