The Federal Government has ordered an immediate halt to deductions from workers’ salaries under the Employees’ Compensation Scheme and pledged to refund previous deductions, following mounting pressure from the Nigeria Labour Congress (NLC).
The move comes after the NLC accused the government of diverting 40 percent of workers’ hard-earned contributions, warning that such actions would not be tolerated. The Congress had threatened to mobilize its members for a nationwide strike if urgent steps were not taken to address the concerns.
The Nigeria Social Insurance Trust Fund (NSITF), which oversees the scheme, clarified that the deductions originated from a 2023 government policy directive. However, the Fund assured Nigerian workers that the practice had been discontinued and all affected contributions would be refunded in due course.
Despite this concession, tension continues to mount as the NLC insists that the Federal Government must urgently constitute the board of the National Pension Commission (PenCom) to safeguard workers’ savings. Employers’ groups have also thrown their weight behind the demand, stressing that transparency and accountability remain crucial in managing pension and compensation schemes.
Labour leaders said they were still reviewing the government’s latest pronouncement and warned that unless concrete steps are taken to restore confidence, the threat of industrial action remains on the table.
This development underscores the growing friction between the government and organised labour over workers’ welfare, with both sides now under pressure to avert another round of strikes that could further hurt the already fragile economy.