Organised private sector rejects NSITF Act amendment

The Organised Private Sector of Nigeria (OPSN) has strongly opposed the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act currently being considered by the Senate. The OPSN, which comprises the Manufacturers Association of Nigeria (MAN), the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association […]

The Organised Private Sector of Nigeria (OPSN) has strongly opposed the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act currently being considered by the Senate.

The OPSN, which comprises the Manufacturers Association of Nigeria (MAN), the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the Nigeria Association of Small and Medium Enterprises (NASME), the Nigeria Association of Small Scale Industrialists (NASSI), and other employers’ federations, expressed concern that the proposed changes could undermine the Fund’s integrity and expose it to political manipulation.

In a joint letter addressed to the President of the Senate and signed by the Directors-General of the five OPSN member organisations, the group warned that the proposed amendment which has scaled second reading poses a grave threat to the Fund’s tripartite governance structure, accountability mechanisms, and long-term sustainability.

“The proposed amendment threatens to fundamentally weaken the NSITF governance structure, erode transparency and accountability, and expose the Fund to undue political interference,” the statement reads.

It added, “The NSITF was established on a tripartite foundation representing Government, Employers, and Labour, in alignment with the principles of the International Labour Organisation (ILO) Conventions 102, 144, and 87. These conventions, which Nigeria has ratified, mandate that social security institutions be managed with the effective participation of all social partners. Any deviation from this standard is a violation of Nigeria’s international obligations.”

The OPSN explained that the proposed amendment seeks to reduce the influence and representation of employers and workers—who are the main contributors and beneficiaries of the Fund—while increasing government dominance through political appointments.

Such a move, it stated, would undermine the checks and balances that ensure contributors’ funds are managed prudently and transparently.

“The current NSITF Management Board serves as the trustee and conscience of the Fund. Weakening or replacing this structure with a politically dominated body would erode its autonomy, open the door to mismanagement, and ultimately endanger the benefits and security of millions of Nigerian workers and their families,” OPSN warned.

Citing international experience, the OPSN observed that when social security funds become politicised or are removed from social partner oversight, the results have historically been inefficiency, corruption, and loss of public confidence.

The OPSN further clarified that the NSITF remains the sole statutory body empowered to administer the Employees’ Compensation Act (ECA), and any attempt to create parallel structures or alter this arrangement would not only create confusion but also violate both domestic and international standards.

“As the primary contributors to the Fund, we will employ all legitimate and legal means, including engagement with international labour supervisory mechanisms, to safeguard the NSITF from actions that threaten its effectiveness, sustainability, and alignment with global best practices,” the group stated.