FG Bows To Pressure, Meets Two Key Demands As Workers Threaten Shutdown
The Federal Government has moved to avert a nationwide strike by meeting two major demands of the Nigerian Labour Congress (NLC).
The demands include the reversal of the 40 percent deduction from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury and the appointment of Opeyemi Agbaje as chairman of the National Pension Commission (PenCom). However, PenCom has yet to officially confirm Agbaje’s appointment.
Last week, the NLC, through its president, Joe Ajaero, issued a seven-day ultimatum to President Bola Ahmed Tinubu, threatening to shut down the economy unless government acted on the diversion of workers’ funds from the NSITF and the constitution of the PenCom board.
In a letter to the NLC dated August 16, 2025, NSITF Managing Director, Oluwaseun Faleye, assured that no further deductions would be made from workers’ contributions or investment proceeds. He explained that while a 2023 Ministry of Finance circular had introduced automatic deductions of 50 percent from the revenues of government-owned enterprises, the policy no longer applies to NSITF remittances following a directive from the Accountant-General in March 2024. Some of the previously deducted funds, he noted, have already been reversed.
Faleye added that both the Minister of Finance and the Director-General of the Budget Office, in meetings held this August, gave firm assurances that no future deductions would be made.
Reacting, NLC Secretary, Christopher Onyeka, confirmed receipt of the letter, stating that the union’s executive council would review the government’s response before deciding on the proposed strike.
He stressed that NSITF contributions are meant to compensate workers in cases of injury, not to serve as government revenue.
“Protecting these funds is our responsibility,” Onyeka said.
