FG Meets Two Key Demands of Nigerian Workers Amid Shutdown Threat

The Nigerian government has reportedly met two major demands of the Nigeria Labour Congress (NLC) amid a looming strike threat.

The government has reversed the 40 percent deduction from the Nigeria Social Insurance Trust Fund (NSITF) into the national treasury and is set to appoint Opeyemi Agbaje as Chairman of the National Pension Commission (PenCom), though the appointment is yet to be officially confirmed by PenCom.

Last week, the NLC, led by President Joe Ajaero, issued a seven-day ultimatum to President Bola Ahmed Tinubu, threatening to shut down the economy if their demands were not met. These included stopping the diversion of workers’ funds from NSITF and constituting the PenCom board.

In a letter dated August 16, 2025, NSITF Managing Director Oluwaseun Faleye assured that no further deductions would be made from workers’ contributions or investment proceeds. The letter cited a previous policy that introduced automatic deductions from Federal Government-owned enterprises’ internally generated revenue, but clarified that employers’ statutory contributions to NSITF are no longer being deducted following a directive from the Accountant-General of the Federation.

Faleye added that some previously deducted funds have already been reversed and that both the Finance Minister and Budget Office Director-General committed in August 2025 to halt further deductions.

NLC Secretary Christopher Onyeka confirmed receipt of the letter and stated that the executive council would review it before deciding on the strike. Onyeka emphasized that NSITF contributions are meant to protect workers in case of injury and should not be used for fiscal purposes.