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Strike countdown begins as PenCom, Labour disagree on Pension funds

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•PenCom reacts, NSITF silent as Labour issues seven-day strike notice over alleged 40% pension fund diversion

The Nigeria Labour Congress has threatened a nationwide strike if the Federal Government fails to return what it claims to be billions of naira taken from workers’ insurance contributions. It also demanded that the government fill the leadership gap in the country’s pension regulatory commission within a week.

The NLC accused the Federal Government of syphoning 40 per cent of contributions from the Nigeria Social Insurance Trust Fund into the national treasury. The fund, which is financed by payroll deductions from millions of workers, is meant to protect them in the event of injury or job loss.

However, the National Pension Commission argued that the Contributory Pension Scheme remains secure and continues to grow, as it kicked against claims of missing funds.

“The (NLC) Central Working Committee expressed outrage at the ongoing assault on workers’ social protection rights through the Federal Government’s diversion of 40 per cent of workers’ contributions to the national coffers as revenue, in flagrant violation of the statutes establishing the NSITF,” NLC President Joe Ajero said in a communique shared on Thursday.

The union noted the move violated the laws establishing the NSITF and stripped it of its role as a safety net. “Pension funds are deferred wages, not government revenue,” Labour stated, warning that any further interference would trigger industrial action.

The group also criticised the government’s failure to appoint a governing board for the National Pension Commission, leaving the administration in sole control of billions in retirement savings. The union said the vacuum created heightened risks of mismanagement and political interference in the pension sector.

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The standoff comes amid broader disputes over pension management across the country. In July, a coalition of labour unions in Ogun State gave state officials 72 hours to halt the planned rollout of a contributory pension scheme, citing a 17-year backlog of unpaid contributions worth over N82bn. They called for a return to the old pension system or a delay until the arrears are cleared.

The communiqué stated that the NSITF must refund all diverted funds within seven working days and that PenCom must submit a full status report of pension funds and have its Governing Board constituted within the same period. It warned that if these demands were not met, the NLC would no longer guarantee industrial peace, signalling the possibility of nationwide strikes and protests.

PenCom, NECA react

Responding to the union’s claims, the Head of the Corporate Communications Department, PenCom, Ibrahim Buwal, told The PUNCH that the appointment of a Governing Board is a matter for the Federal Government rather than the regulator.

“The issue of the board is not an agency issue; it is for the Federal Government, so we are not in a position to comment on that,” he said, adding that the commission is still studying the NLC communiqué.

On the safety of pension assets, he maintained that funds under the Contributory Pension Scheme remain secure and continue to grow. “The safety of pension funds is confirmed by the consistent growth and accumulation of the assets because of regular contributions and profitable investments,” he said.

He noted that contributors receive monthly or quarterly statements of their Retirement Savings Accounts and stressed, “Nobody’s money is missing. I can confirm there are no pension funds under the CPS that are missing.”

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The Nigeria Employers’ Consultative Association earlier called on the Federal Government to reconstitute the governing body of PenCom in compliance with the Pension Reform Act.

“That’s what the Act says. Not constituting it is a violation of the Act.

Since this government has shown respect for the due process and rule of law, we expect that the important thing should be done,” the Director-General of NECA, Adewale-Smatt Oyerinde, stated.

“The board should be constituted. It’s necessary; it’s important. There are only two stakeholders in the pension income industry. There are only two. The employers and the workers. Because it’s only the employers and the workers who are contributing. So, NLC and NECA members are the critical stakeholders, the only stakeholders. So if the stakeholders have said they should constitute the board, we trust that the president will do the needful.”

NSITF silent

The Nigeria Social Insurance Trust Fund said there is no official response yet to the seven-day ultimatum issued by the NLC over alleged diversion of workers’ contributions and the non-constitution of the PENCOM board.

Manager of Actuaries, Planning and Research at the Fund, NSITF, Emmanuel Ulayi, disclosed this in a phone call with our correspondent in Abuja. “No official response yet,” he said.

The Head of Corporate Affairs of the Fund, Alexandra Mede, could not be reached. In response to a text message sent to her by our correspondent, she said she was currently hospitalised.

Other issues

The NLC meeting also ratified the dissolution of the Edo State Council’s leadership for what it described as acts of unethical behaviour, anti-union conduct, and violations of the NLC Constitution. A caretaker committee has been appointed to run the council’s affairs until fresh elections are conducted.

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Reviewing the broader state of the nation, the NLC criticised government policies it said had worsened runaway inflation, joblessness, hunger, insecurity, and the collapse of public services. The Congress urged the adoption of a people-centred development model anchored on public ownership of strategic sectors, living wages, industrial revival, and robust social protection systems.

Ajero also condemned what it called a false claim of ownership by the administration over the NLC National Headquarters, which it stressed was purchased with workers’ contributions, and alleged the government had engaged in cyber and media intimidation of trade unions while covertly seeking to amend the NSITF Act to gain full control of the funds.

“This represents a direct attack on workers’ rights, hard-earned resources, and the principle of tripartite governance enshrined in international labour standards,” the communiqué read, adding that the NSITF belongs solely to the Nigerian working class and that the NLC would mobilise all legitimate means to protect workers’ interests.

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X offers changes to blue checkmarks after $138m EU fine

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Elon Musk’s X has offered to make changes to its blue checkmark for “verified” accounts, a European Commission spokesman said Friday, after the platform received a 120-million-euro ($138 million) fine.

The European Union slapped the fine in December on X for breaking its digital rules, including through the “deceptive design” of its blue checkmark.

“X has submitted remedies in relation to its blue checkmark. The commission will now carefully assess the proposed remedies,” EU spokesman for digital affairs Thomas Regnier said.

He did not provide details about what X had submitted.

X risked periodic financial penalties had it not submitted any remedy.

“We have to value the fact that after a constructive exchange with the company, the company has taken its obligation seriously and has submitted us remedies,” Regnier told reporters in Brussels.

When contacted by AFP, X did not provide comment immediately.

Blue checkmarks, long free of charge at what was previously known as Twitter, were intended to signal the identity of certain users — such as celebrities, journalists and politicians — had been verified in an effort to build trust in the platform.

But after Musk bought the platform, he allowed users to pay to get one.

X in February announced it had filed an appeal with the EU’s top court against the fine, which was the first ever under the bloc’s Digital Services Act (DSA).

But Regnier said the commission still expected X to pay it by Monday, and to provide further remedies on other breaches by April 28.

The fine came under a probe started in December 2023.

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That investigation continues as EU regulators study how X tackles the spread of illegal content and information manipulation.

X has often been in the EU’s sights.

The 27-nation bloc in January began another DSA probe into the company’s AI chatbot Grok’s generation of sexualised deepfake images of women and minors after a global outcry.

AFP

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Akwa Ibom to drive large-scale farming with equipment leasing firm

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Akwa Ibom State Government has said it will soon inaugurate its Agric Equipment Leasing Company as part of efforts to promote large-scale mechanised farming in the state.

Governor Umo Eno disclosed this while fielding questions from Government House correspondents shortly after inspecting the progress of work at the company’s facility located at Ekpri Nsukara in Uyo on Thursday.

In a statement obtained from the Government House Press Unit on Friday, the governor commended the contractor for the progress recorded at the project site.

“There is a lot of improvement in the work done here to get the company kick-started in earnest.

“The contractor has given her word that the project will soon be inaugurated, and I hold her to that,” he said.

Eno explained that the essence of the project is to encourage farmers to embrace large-scale farming in order to boost productivity, increase earnings and ensure food sufficiency in the state.

“The farming season is here again, and we are putting everything in place for this project to function optimally. There are over 25 tractors with tracking devices and two low-bed trucks in readiness for the agriculture programme.

“What we intend to do here is to lease these equipment to our farmers across the state at subsidised rates so that they can utilise it for improved farming productivity.

“These farming equipment range from ploughs to harvesters and other implements that will help improve farming output,” he said.

The governor noted that the initiative forms part of his administration’s strategy to mechanise farming methods in the state in order to achieve large-scale crop production and increase farmers’ profits.

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Speaking on the government’s tree-crop revolution programme, Eno assured that the initiative would commence once the rainy season sets in, noting that such crops thrive better during the rainy season.

“The nursery for palm seedlings has already been established, and the necessary enumeration of farmers has been conducted across the state.

“Within the next two weeks, the seedlings will be distributed to farmers for planting across the state,” he added.

The governor urged farmers to take advantage of the various agricultural programmes introduced by the government to enhance large-scale farming output and improve economic growth in the state.

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Forum dismisses claims of N210tn missing in NNPC accounts

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A coalition of professionals under the Ajiyya Solidarity Forum has dismissed allegations that about N210tn is missing from the accounts of the Nigerian National Petroleum Company Limited (NNPC).

Addressing journalists on Thursday, ASF National Coordinator, Usman Hamza, described the claim as “mathematically impossible” and politically motivated.

The group’s position is in response to a recent claim by the Chairman of the Senate Public Accounts Committee, Ahmed Wadada, that the NNPC Limited could not account for about N210tn.
Hamza said such a figure was misleading.

“Senator Wadada’s claim of N210tn ‘unaccounted for’ funds is a mathematical impossibility designed to shock the public,” Hamza said.

He argued that the claim did not align with Nigeria’s fiscal reality, noting that the country’s entire 2024 national budget stood at about N28.7tn.

“To suggest that a single entity ‘lost’ nearly eight times the national budget is an insult to the intelligence of Nigerians,” he added.

The forum also condemned threats of arrest warrants against former officials of NNPCL, including former Chief Financial Officer, Umar Ajiya, describing the move as part of a coordinated campaign of political blackmail.

According to the group, the Senate committee may have misinterpreted financial figures by combining accrued expenses and receivables in a way that falsely suggests missing funds.

“We consider that the committee has erroneously ‘netted’ N103tn in accrued expenses, largely joint venture liabilities, with N107tn in receivables owed to NNPCL. Labelling money owed to a company as ‘missing funds’ is a professional travesty,” Hamza stated.

During the ongoing review of the financial records of Nigerian National Petroleum Company Limited, the Senate Public Accounts Committee, chaired by Wadada, had raised concerns over alleged discrepancies running into trillions of naira.

The ASF maintained that the allegations ignored the broader financial and structural reforms undertaken by the national oil company in recent years.

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Furthermore, Hamza mentioned that the tenure of former CFO Ajiya coincided with the transition of the national oil firm into a commercial entity under the Petroleum Industry Act, a reform that ended decades of opaque financial reporting.

“Mr Ajiya’s tenure saw the transition of NNPC into a commercially driven entity and the publication of the first audited financial statements in 43 years,” the forum stated.

ASF defended the N5.9bn cost incurred during the transition process of NNPC to NNPC Limited, saying it covered complex legal and structural reforms required to transform the former state corporation into a limited liability company.

The forum warned that politicising the Senate’s oversight role could damage Nigeria’s credibility in the eyes of international investors.

“Using the Senate’s hallowed chambers to pursue personal vendettas damages Nigeria’s reputation with international investors,” Hamza said.

The forum further called on the leadership of the Senate to institute an independent ethics investigation into what it described as an alleged demand for bribes linked to the ongoing oversight process.

“We call on the Senate leadership and its Ethics Committee to investigate the alleged bribe demand connected to this oversight exercise,” he said.

He urged lawmakers to stop what he described as the harassment of officials who have already submitted several technical responses to the committee.

“Public accountability should be pursued through a sober forensic review of facts, not through sensational claims and phantom numbers,” he added.

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