- NERC stops multiple board membership by directors in power sector
President of the Nigeria Labour Congress, Joe Ajaero, has expressed deep concern over the Federal Government’s failure to reconstitute the board of the National Pension Commission (PenCom), warning that the prolonged delay compromises transparency and accountability in the management of workers’ retirement funds.
Speaking at the annual general meeting of TrustFund Pensions Limited in Abuja, Ajaero pointed out that PenCom has been operating without a formally constituted board for nearly four years, despite statutory provisions requiring representation from both labour and employers.
“The PenCom board is supposed to have institutional representation from labour and employers, since it is workers’ and employers’ contributions that make up the pension funds. But for years now, that board has not been inaugurated, and yet decisions are being made. That raises questions about accountability,” Ajaero stated.
He also criticized persistent delays in the payment of retirees’ entitlements, lamenting that many former workers continue to face hardship due to long waiting periods and unpaid benefits, despite regular contributions during their service years.
Raising further questions on transparency, the NLC President called for clarity in the management of funds from workers’ compensation, urging improved oversight to ensure the resources are used appropriately.
Regarding the broader economic picture, Ajaero stated that the continued rise in gasoline prices, electricity tariffs, and inflation has drastically reduced the real value of wages and pensions, putting further hardship on Nigerian workers.
“Whether it is N70,000 or more, workers’ pay cannot go far in an environment where fuel prices, electricity tariffs, and inflation keep rising. The Federal Government needs to renew its efforts to stabilise the economy and restore the value of the naira,” he said.
During his speech at the AGM, the Managing Director/CEO of TrustFund Pensions, Uche Ihechere, revealed that the firm increased its assets under management by 20 percent in 2024 and recorded a 34 percent rise in profit before tax.
He credited the achievement to careful management and strategically planned investment approaches.
Ihechere also commended the Federal Government’s proposed issuance of a N700 billion bond to clear pension arrears, describing it as a “timely intervention” that demonstrates commitment to retirees’ welfare.
He called for the development of more infrastructure-based investment options with greater yields, but pointed out that inflation still poses a threat to the sector’s real returns.
Stronger regulatory control, improved payment mechanisms, and prompt, transparent benefit distribution to contributors and retirees were among the other stakeholders who supported the necessary reforms in the pension industry.
NERC stops multiple board membership by directors in power sector
Also, the Nigerian Electricity Regulatory Commission has barred its directors from serving on the boards of more than two companies in the electricity industry.
The Commission in its ‘Code of Corporate Governance’ report, released on May 30, warned against “multiple directorships”.
“An individual shall not concurrently serve as a director of more than two companies in NESI.
“Simultaneous service on numerous boards may impede an individual’s capacity to discharge their duties equitably and impartially, potentially leading to conflicts of interest.
“The board and shareholders must thoroughly assess the suitability of nominees for appointment, taking into account their other obligations and commitments,” the report said.
According to the report, a prospective nominee to the board of a licensee must disclose any memberships on other boards before their appointment.
“The board shall consider the nominee’s other directorships and ascertain whether the nominee can effectively contribute to the board’s performance and responsibilities prior to endorsing them for appointment. Serving directors shall inform the board, through the chairman, of any potential appointments to other boards,” the NERC said.
The NERC said each director is expected to avoid any conflict of interest, whether arising directly or indirectly through affiliations with other entities.
FG probes unremitted funds, needs ₦880bn for road maintenance
Meanwhile, the Federal Government requires about ₦880 billion annually to maintain all federal roads across Nigeria, Minister of State for Works, Mohammed Bello Goroyo, disclosed on Monday.
Goroyo made this known during an investigative hearing held by the House of Representatives ad hoc committee investigating the implementation and remittances of the 5% user charge for road maintenance under the Federal Roads Maintenance Agency.
Also speaking at the hearing, Managing Director of FERMA, Chukwuemeka Agbasi, revealed that the road user charge meant to be deducted from the pump price of petrol and diesel has never been implemented.
According to him, both the defunct Petroleum Products Pricing Regulatory Agency and its successor, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, failed to enforce the law.
Goroyo blamed inadequate funding as the biggest challenge facing road infrastructure in the country, stating that the 5% user charge was created to bridge this funding gap.
However, both FERMA and the Ministry of Works have been unable to access the funds since 2007.
He stated, “Under the visionary leadership of His Excellency, President Bola Tinubu, the Federal Ministry of Works remains steadfast in the Renewed Hope Agenda, an agenda dedicated to delivering world-class infrastructure that fosters economic growth, strengthens connectivity, and enhances the daily lives of our citizens.
“Our roads are the lifelines of commerce and social integration, and their maintenance is not merely a policy directive but a national imperative.
“The 5% user charge, as enshrined in the FERMA Act, was designed to serve as a sustainable funding mechanism for road maintenance and rehabilitation. However, for years, FERMA has grappled with severe funding inadequacies, hampering its ability to maintain our vast road network effectively.
“While the agency requires an estimated ₦880 billion annually for optimal road conditions, budgetary allocations have consistently fallen short: ₦76.3 billion in 2023, ₦103.3 billion in 2024, and ₦168.9 billion budgeted for 2025.
“Though these figures show gradual increases, they remain far below the necessary threshold for sustainable road maintenance. This persistent funding gap has forced FERMA into a reactive mode of maintenance rather than a preventive approach.
“The consequences of this are glaring deteriorating road conditions, increased repair costs, and prolonged disruptions for commuters and businesses alike. A proactive strategy, backed by adequate funding, is essential to ensuring smooth, safe, and efficient roadways nationwide.
“Thus, the diligent implementation and timely remittance of the 5% user charge are paramount. This dedicated funding stream offers a viable solution to bridge the financial gap, providing consistent resources to address Nigeria’s infrastructure needs without over-reliance on annual budget appropriations.”
Goroyo further stated that the ad hoc committee’s investigation goes beyond a routine oversight duty, describing it as a collaborative effort to identify implementation challenges and create strong mechanisms for transparent and effective resource use.
He pledged full cooperation from the Ministry and FERMA, promising to provide all necessary documentation and reaffirmed the government’s commitment to ensuring road user charges serve their intended purpose.
“The insights gained from this investigation will not only enhance public trust but also reinforce the integrity of the Renewed Hope Agenda, translating policy into tangible improvements in our national infrastructure,” he added.
The Speaker of House of Representatives, Abbas Tajudeen, who declared the hearing open, said the House had, on March 19, considered a motion showing non-implementation of the 5% user charge as stipulated under the FERMA Amendment Act, 2007.
He stated that despite provisions in Section 14(1)(h) of the Act which allocates 5% of the pump price of petrol and diesel to be shared between FERMA and state maintenance agencies in a 40:60 ratio the provision has never been enforced.
Abbas said, “Over the years, this section of the Act has not been complied with despite different attempts by the National Assembly through their oversight activities to compel compliance. This has affected the operations of the beneficiary agencies of government and, by extension, the Nigerian people who ply public roads.
“We owe Nigerians the obligation by Sections 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) to conduct a comprehensive investigation into the status of the 5% user charge to determine the extent of the violation of the law and the amount of money unremitted and those responsible for the non-implementation.”
He added that Nigerians expect the committee to ask critical questions, examine all documents, and determine how much has accrued from the charge since the law’s enactment, how much is outstanding, and what is owed to FERMA and similar state agencies.
He emphasized the hearing must also offer firm recommendations to prevent further abuse of the law and streamline the remittance process to ensure easy access to funds by the relevant agencies.
FERMA Managing Director, Agbasi, in his submission, noted that despite past efforts, the agency has never accessed the 5% charge because the implementing bodies failed to produce a framework for its execution.
He recalled that former President Goodluck Jonathan issued a presidential directive in 2011 for the release and implementation of a template, but nothing followed afterward.
The chairman of the ad hoc committee, Francis Waive, clarified that the user charge is not a new tax or an attempt to increase fuel prices, as it has been in law since 2007.
He said the probe aims to address the ongoing violation of the law, affirming the House’s resolve to ensure that all legislative enactments are enforced.
“This is the best time to implement the user charge,” Waive said, adding that all relevant agencies have been invited to participate in the investigation.