The Nigeria Employers’ Consultative Association has threatened to halt employer contributions to the Nigeria Social Insurance Trust Fund and the National Pension Commission if their governing boards are not urgently constituted.

Speaking in Lagos on Sunday, NECA’s Director-General, Mr Adewale-Smatt Oyerinde, decried the prolonged delay in setting up these boards, stressing that their absence creates serious governance and accountability concerns in managing employer contributions and workers’ pension funds.

“The NSITF Act of 1993 mandates the establishment of a Board to oversee social insurance contributions, while the Pension Reform Act (PRA) 2014 requires the PenCom Board to safeguard the integrity of the pension industry.

“Without these boards, there is a glaring governance gap that weakens regulatory oversight and exposes the funds to risks,” Oyerinde said.

He emphasised that contributions to NSITF and PenCom are not government revenues but strictly employer funds meant for social security and pension benefits.

Oyerinde warned that continued government inaction raises transparency concerns, contradicts international best practices, and undermines the confidence of employers and workers in these institutions.

“Employers and workers who make mandatory contributions to these schemes are increasingly alarmed by the lack of governance structures to ensure judicious fund management,” Oyerinde noted.

“This deviation from global standards, including those advocated by the International Labour Organisation, threatens the financial security of Nigerian workers and retirees,” he added.

NECA cautioned that the failure to constitute these boards contravenes statutory provisions and erodes trust in the system.

Oyerinde stressed that without immediate action, employers may be forced to suspend contributions, which could destabilise the social security and pension system.

“The business community remains committed to fulfilling its statutory obligations, but we expect the government to uphold the principles of good governance,” he asserted.

The call for urgent action comes amid growing concerns over financial mismanagement in government institutions. Stakeholders fear that the prolonged leadership vacuum in NSITF and PenCom could lead to inefficiencies and misuse of funds meant for workers’ welfare.

NECA’s warning adds to mounting pressure on the Federal Government to address governance lapses across critical agencies.

The association urged President Bola Tinubu’s administration to act swiftly in reconstituting the boards, ensuring transparency, accountability, and the protection of workers’ funds.