Nigeria’s Government Relents to Labour Demands Amid Strike Threat
In a move to avert a nationwide strike, the Nigerian government has agreed to two key demands from the Nigerian Labour Congress (NLC). The concessions include reversing a 40 percent deduction from the Nigeria Social Insurance Trust Fund (NSITF) and appointing Opeyemi Agbaje as chairman of the National Pension Commission (PenCom).
The NLC had issued a seven-day ultimatum to President Bola Ahmed Tinubu, threatening to shut down the economy if their demands were not met. The union had been protesting the diversion of workers’ funds from the NSITF and the delayed constitution of the PenCom board.
However, in a letter dated August 16, 2025, NSITF Managing Director Oluwaseun Faleye assured the NLC that “no further deductions would be made from either contributions or investment proceeds.” Faleye also confirmed that a policy of automatic deduction of 50 percent from the internally generated revenue of federal government-owned enterprises had been introduced in December 2023.
The NSITF clarified that this policy had been halted in March 2024, following a directive from the Accountant-General of the Federation, and some previously deducted funds had already been reversed. Meetings between the Minister of Finance and the Director-General of the Budget Office in August 2025 further solidified the commitment to halt these deductions.
Reacting to the development, NLC Secretary Christopher Onyeka confirmed the receipt of the letter, stating that the union’s executive council would review the correspondence before deciding on the proposed strike. Onyeka emphasized the importance of protecting workers’ funds, saying, “The contributions to NSITF are intended to compensate workers in the event of injury. They are not government revenue and should not be used for fiscal purposes. Protecting these funds is our responsibility.”
While PenCom is yet to officially confirm Agbaje’s appointment, the Nigerian government’s concessions seem to have temporarily eased tensions with the NLC. As the situation unfolds, observers will be watching closely to see if the proposed strike is called off and if the government continues to engage with the labour union’s concerns.
