PenCom, TUC deepen collaboration to secure dignified retirement for Nigerian workers

The National Pension Commission (PenCom) and the Trade Union Congress of Nigeria (TUC) are strengthening ties to drive a new phase of reforms aimed at improving retirement outcomes, expanding coverage, enforcing compliance, and ensuring Nigerian workers retire with dignity.

Omolola Oloworaran, director general, PenCom in her welcome remarks at the First Bi-Annual Roundtable Discussion between the PenCom and leadership of the Trade Union Congress of Nigeria (TUC), said the partnership is central to improving retirement outcomes for Nigerian workers.

“This partnership is fundamental to ensuring dignity for all workers in Nigeria, and we are pleased to be building this collaboration,” Oloworaran said, while urging broader participation from labour representatives at future engagements.

The meeting signals a shift by the regulator from maintaining system stability to driving measurable impact, after more than two decades of reforms that have strengthened confidence in Nigeria’s pension architecture.

Oloworaran said at the core of our institutions is a shared responsibility and purpose toward the Nigerian worker, to ensure they retire with dignity, noting that this engagement is therefore very important to us, and we intend to hold it biannually, not just to talk, but to discuss critical areas of mutual co-operation and collaboration.

Meanwhile, Festus Osifo, president of TUC, whole led other executive members of the labour union to the round table said the interaction with PenCom is long overdue, noting that it is coming at a critical time, to jointly examine how the pension system can be strengthened and how PenCom can more effectively deliver on her mandate.

“We see this engagement as the beginning of sustained collaboration. Any initiative that strengthens workers, both during their active years and in retirement is one we fully support.”

He noted that when the Pension Reform Act was introduced in 2004, there were serious concerns about fund management. “Today, the progress made stands as one of the success stories of Nigeria’s democratic journey.”

“From my direct experience, PenCom has distinguished itself as one of Nigeria’s most credible institutions, demonstrating professionalism and a strong commitment to its mandate.”

Osifo further stated that, “In a system where institutional trust is often challenged, PenCom has continued to uphold integrity and inspire confidence among contributors.”

“The TUC believes that deeper collaboration between labour and the regulator will be critical to further improving outcomes for Nigerian workers and pensioners.”

“On behalf of the TUC, we commend PenCom for initiating this dialogue and look forward to a sustained, mutually beneficial partnership.”

On new reforms being driven by the PenCom, Oloworaran continued, noting that the Commission’s ‘Pension Revolution 2.0’ is rolling out measures designed to boost retirement income, expand coverage, and shield savings from macroeconomic pressures.

A key pillar of the reforms she said is the introduction of health insurance for pension contributors, with a focus on low-income earners. “We believe that well-being is essential for every worker, and providing healthcare is a key part of that,” she said, adding that the initiative will support broader social protection goals.

PenCom is also working to establish a minimum pension through the Pension Protection Fund, backed by federal government contributions following the clearance of outstanding pension liabilities. “This will enable us to establish a minimum pension for Nigerians, a critical step towards ensuring dignified retirement,” Oloworaran said.

Currently funded by PenCom, Pension Fund Administrators (PFAs), and Pension Fund Custodians (PFCs), the scheme will initially be deployed in the public sector before expanding to private-sector workers as funding grows. The regulator is also pushing for eventual mandatory contributions, a move likely to require labour backing amid resistance from employers.

To improve returns, PenCom has revised its investment guidelines, expanding allowable asset classes to include infrastructure and other real assets that can hedge against inflation and currency volatility. It has also introduced securities lending and repurchase agreements to deepen market activity and enhance yields.

“These reforms are already yielding results,” Oloworaran said, noting that pension fund returns are now approaching and in some cases exceeding inflation, marking a turnaround after years of erosion in real value.

Beyond returns, the regulator is targeting a major expansion in coverage. Participation remains concentrated in the formal sector, with compliance across Nigeria’s 36 states still uneven. PenCom is intensifying engagement with state governments to improve adoption.

At the same time, it is making a renewed push into the informal economy through its rebranded Personal Pension Plan, previously known as micro-pensions. The initiative is designed to attract a broader base of contributors, including self-employed workers and small businesses.

“Our goal is to ensure that at least 85 percent of Nigerian workers are covered by pensions,” Oloworaran said.

To drive adoption, PenCom has introduced Accredited Pension Agents to reach underserved populations directly in markets and communities, while also creating new income streams by allowing them to share in PFA fees, an approach she is expected to attract fintech participation.

Still, enforcement remains a critical challenge. The regulator is stepping up collaboration with labour unions and legal institutions to tackle non-compliance, particularly among employers who fail to remit deducted contributions.

“Employers who fail to remit pension contribution must be held accountable,” Oloworaran said, signalling a tougher stance. She added that PenCom will work closely with the TUC and other unions to strengthen enforcement mechanisms.

She said the renewed partnership with labour underscores the regulator’s broader strategy, aligning policy, enforcement, and stakeholder engagement to ensure that pension reforms translate into real improvements in workers’ lives.

“Our shared responsibility between the TUC and PenCom makes collaboration essential,” she said. “We will continue to engage regularly and strengthen communication as we move forward.”

Oloworaran also credited strong backing from the federal government for accelerating reforms, stating that the, “The current administration has demonstrated unprecedented commitment to the pension industry, from clearing liabilities to prioritising pension fund releases,” she said. “This support has been instrumental in our progress and will continue to drive future success.”