The Organised Private Sector of Nigeria has expressed concern over the proposed amendment to the Nigeria Social Insurance Trust Fund Act championed by the Senate Committee on Labour and Employment, chaired by Senator Diket Plang.
These concerns were expressed in a statement made available to The PUNCH on Sunday.
The OPSN comprised the Manufacturers Association of Nigeria, the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, the Nigeria Employers’ Consultative Association, the Nigeria Association of Small and Medium Enterprises, the Nigeria Association of Small Scale Industrialists and 25 other employers’ federations.
In a letter to the Senate President and signed by the five Directors-General, the OPSN objected to the proposed changes, which have already passed a second reading in the Senate.
“These amendments threaten to fundamentally weaken the NSITF governance structure, erode accountability and transparency, and expose the Fund to undue political interference. The NSITF was founded on a tripartite structure, representing Government, Employers, and Labour, in strict alignment with International Labour Organisation Convention 102 on Social Security (Minimum Standards), Convention 144 on Tripartite Consultation, and Convention 87 on Freedom of Association and Protection of the Right to Organise. These Conventions, which Nigeria has ratified, require that social security institutions be managed with the full and effective participation of social partners, ensuring that the interests of both contributors and beneficiaries are protected from political or unilateral government control.”
OSPN explained that the proposed amendment seeks to reduce the representation and influence of employers and workers, who are the main contributors and beneficiaries of the Fund, while increasing government control through political appointments.
“This approach is not only contrary to the spirit and letter of the ILO Conventions but also undermines the principles of good governance, transparency, and accountability that are essential for the effective management of social security funds. The ILO’s Recommendation 202 on Social Protection Floors further underscores the need for participatory, transparent, and accountable governance in social protection systems, warning against the dangers of politicisation and lack of stakeholder involvement,” said the OPSN.
According to OSPN, the Management Board of the NSITF, as currently constituted, serves as the Trustee and conscience of the Fund, providing critical checks and balances to ensure that contributors’ resources are managed prudently, transparently, and in the best interests of Nigerian workers.
“Weakening or replacing this Board with a politically dominated structure would erode the Fund’s autonomy, open the door to mismanagement, and ultimately jeopardise the benefits and security of millions of Nigerian workers and their families. International experience has repeatedly shown that when social security funds are politicised or removed from the oversight of social partners, the result is often inefficiency, loss of public trust, and the erosion of social protection for workers.
“It is important to clarify that no two agencies are managing the NSITF. In fact, the NSITF is the sole statutory agency responsible for implementing the Employees’ Compensation Act. Any attempt to create parallel structures or to repeal or alter this arrangement under the guise of reform would not only remove existing safeguards but also contravene international standards and expose the Fund to unnecessary risks, including the potential for confusion and mismanagement”. OSPN said.
The OPSN warned that it will not accept any amendment that weakens the Fund’s governance framework or diminishes the role of organised labour and employers in its management, being primary contributors to the Fund.
“The OPSN and its members are prepared to employ all legitimate and legal means, including recourse to international labour standards and the ILO’s supervisory mechanisms, to protect the NSITF from any actions that threaten its effectiveness, sustainability, and compliance with global best practices,” the stakeholders asserted.
The OPSN also wondered at the priority which the Senate has given to the amendment of the NSITF while the Nigeria Labour Law had remained unattended to.
On the Nigeria Labour Law, the OPSN said, “This Bill is critical for the future of work in Nigeria. It is designed to address urgent gaps in the nation’s labour and employment laws, improve dispute resolution, enhance workplace safety, promote social dialogue, and clarify the rights and responsibilities of all parties. Passing the Labour Law Bill is essential for aligning Nigeria’s labour laws with international standards, promoting decent work, and supporting sustainable economic growth. Its continued delay undermines efforts to modernise the country’s industrial relations framework and protect employers and employees.”
The NSITF, the OPSN said, is a cornerstone of Nigeria’s social protection system and must not be politicised or weakened: “Its governance must remain firmly rooted in tripartism, transparency, and accountability as enshrined in ILO Conventions and international best practices.”
The PUNCH reported that the latest development followed an alarm raised by the Nigerian Labour Congress over deductions from the Employees’ Compensation Scheme managed by the Nigeria Social Insurance Trust Fund.
The Federal Government announced the reversal of the deductions following the outrage and threat of a strike from the NLC.
