NLC Accuses Federal Government of Diverting Workers’ Funds

Tensions are rising between the Nigeria Labour Congress (NLC) and the Federal Government as the union has raised serious allegations regarding the handling of funds by the Nigeria Social Insurance Trust Fund (NSITF). In a bold move, the NLC has accused the government of diverting 40 percent of workers’ contributions from the NSITF into the national treasury, claiming this action is a direct violation of the laws that established the fund.

According to the NLC, these contributions were meant to serve as social insurance for Nigerian workers, providing them with protection in times of injury, illness, or unemployment. Instead, the union claims, a significant portion of these funds has been rerouted into government coffers under the guise of revenue, without any legal justification.

The accusation was detailed in a strongly worded communique issued by the NLC following its Central Working Committee (CWC) meeting held on Wednesday, August 13, 2025. The statement, signed by the NLC President, Joe Ajaero, did not mince words. It issued a seven-working-day ultimatum to the government, starting from Thursday, August 14, demanding that all allegedly diverted funds be accounted for and returned to the NSITF.

The NLC warned that failure to comply within the specified period would result in immediate industrial action. In simple terms, if the government does not resolve the issue within a week, Nigerian workers may go on strike, disrupting various sectors of the economy.

The NLC described the government’s actions as a clear violation of the rights of Nigerian workers and the legal statutes that guide the operations of the NSITF. The Congress emphasized that the NSITF is not government property but belongs to Nigerian workers who contribute their hard-earned money into the system for social protection purposes. The NLC made it clear that it is prepared to use all legitimate and legal means to protect the interests of the workers.

“The NSITF must account for and return all diverted funds within seven working days from today,” the statement declared. “If at the end of these seven working days nothing is done, the NLC will no longer guarantee industrial peace in the sector.”

The situation has sparked outrage within the labor community. The NLC leadership has condemned what it views as ongoing attempts by the government to undermine workers’ rights, especially their social protection entitlements. The Congress also expressed concern over what it described as cyber and media bullying of trade unions and their leaders by government-aligned entities. This, according to the union, is part of a broader strategy to silence dissent and take control of institutions meant to serve the interests of workers.

Adding to the controversy is a new claim allegedly made by the current administration regarding ownership of the NLC National Headquarters. The government is said to be making moves to claim ownership of the building, which the NLC says was built and paid for by Nigerian workers. The union sees this as yet another effort to undermine organized labor and further alienate workers from their own institutions.

The NLC also revealed that it has discovered attempts by the government to amend the NSITF Act in ways that would strip workers of their stake in the fund. These proposed amendments, if passed, would allegedly give the government full control of the NSITF, effectively sidelining the workers who are its primary contributors. The NLC has described such actions as not only undemocratic but also a violation of international labor standards that promote tripartite governance — a model where government, employers, and workers jointly manage labor-related institutions.

In addition to the NSITF issue, the NLC is calling for immediate action on another critical matter — the constitution of the governing board of the National Pension Commission (PENCOM). According to the union, the failure to set up this board has created a governance vacuum that allows the government to unilaterally manage the country’s pension funds without oversight. This situation, the NLC argues, is dangerous and opens the door for potential mismanagement and political interference.

The union emphasized that pension funds are not government revenue but deferred wages that belong to workers. Therefore, these funds should be managed transparently and in compliance with legal frameworks. The NLC is demanding that the PENCOM board be fully constituted within seven days, and that the government submit a comprehensive report on the status of all pension funds within the same timeframe.

The communique stated, “The unlawful non-constitution of the governing board has allowed the government to solely superintend over the pension funds contributed by workers and employers, stripping away the statutory tripartite oversight. The CWC reiterates that pension funds are deferred wages, not state revenue.”

The NLC is also taking action at the state level. It announced the dissolution of its state administrative council in Edo State and has put in place a caretaker committee to manage the affairs of the union in that region. This move, according to the union, is part of its efforts to enforce internal discipline and ensure strict compliance with its constitution. The NLC has pledged to maintain zero tolerance for indiscipline across all state councils.

In summary, the NLC’s grievances point to what it sees as a growing disregard for workers’ rights, legal frameworks, and the principles of shared governance. The union’s decision to issue a seven-day ultimatum shows how seriously it takes the matter and signals that a national labor crisis could be imminent if the government fails to act swiftly.

As the deadline approaches, Nigerians will be watching closely. A nationwide strike could have wide-reaching effects, especially at a time when the country is already grappling with economic challenges. The government’s response in the coming days could determine whether this standoff escalates or moves toward resolution.