The Nigeria Social Insurance Trust Fund (NSITF) has dismissed as “false, malicious, and deliberately misleading” allegations of financial impropriety levelled against its Managing Director/Chief Executive Officer, describing the claims as a coordinated smear campaign aimed at derailing ongoing institutional reforms.
In a statement made available to newsmen on Tuesday in Abuja, the Management of the Fund said the publication making the rounds in sections of the media was “unsupported by verifiable facts” and formed part of attempts to discredit the leadership of the NSITF and undermine its transformation drive.
It partly reads: “The NSITF categorically states that these allegations are false, malicious, and unsupported by verifiable facts. They appear to be part of a coordinated attempt to discredit the leadership of the Fund and undermine the far-reaching reforms currently underway.”
The Fund stressed that it operates strictly within the statutory and financial framework provided by the Employees’ Compensation Act (ECA) 2010 and other public finance management regulations, noting that all monies under its custody are public trust funds subject to multiple layers of oversight.
“All funds accruing to the Employees’ Compensation Fund are subject to multilayered internal controls, routine internal and external audits, Management Board oversight, and supervision by relevant government authorities.”
Reacting to allegations of fund diversion and personal access to NSITF accounts, management insisted that such claims were entirely baseless.
“At no time has the Managing Director/Chief Executive Officer operated, controlled, or had access to NSITF funds outside the approved institutional banking structure of the Fund. Any suggestion that Fund resources were diverted into personal or non-Fund accounts is categorically false.”
On reports alleging the operation of multiple bank accounts linked to a single Bank Verification Number (BVN), NSITF said BVN administration was regulated by deposit money banks and the Central Bank of Nigeria, not individual public officers.
“The existence of multiple accounts, many of which may be dormant or non-operational, does not constitute evidence of wrongdoing,” it said, adding that “no credible evidence has been produced showing that NSITF funds were paid into any personal or third-party account.”
Management also rejected claims that the MD/CEO granted himself “unlimited approval authority,” describing them as a distortion of public financial administration procedures.
“No internal decision can lawfully supersede statutory controls, and no single officer can unilaterally appropriate or expend public funds,” the statement noted.
Addressing claims of expenditure without Board approval, the Fund said such allegations reflected either ignorance or deliberate misrepresentation of how public institutions function.
“Board approval is required for policy direction and annual budgets, while operational expenditures are governed by established statutory and regulatory thresholds.”
The NSITF further maintained that all vendor engagements and payments under the current leadership complied strictly with the Public Procurement Act and relevant regulations.
“Any concerns are appropriately addressed through lawful audit and review processes, not through trial by media,” the statement added.
Linking the allegations to resistance against reform, management said the ongoing automation, recovery of debts, and closure of loopholes had unsettled entrenched interests.
“When loopholes are closed, those who previously benefited from them often react loudly. Unfortunately, this is how resistance to reform frequently manifests. This is corruption fighting back.”
Reassuring Nigerian workers and employers, the Fund declared that its operations remained stable and transparent.
“The NSITF is safe. The funds are secure,” management said, pledging continued commitment to accountability and cooperation with any lawful investigation by relevant oversight bodies.
