The Organised Private Sector of Nigeria (OPSN) has expressed strong opposition to the proposed amendment of the Nigerian Social Insurance Trust Fund (NSITF) Act, describing it as a move that could weaken the Fund’s governance structure and expose it to political interference.
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 25 other employers’ federations, made this known in a letter to the senate president. The letter was signed by the directors-general of the member organisations.The group stated that the proposed amendment, currently under its second reading in the senate, threatens to erode the NSITF’s accountability and transparency by reducing the representation of employers and workers—who are the primary contributors and beneficiaries of the Fund—while increasing government control through political appointments.
“These amendments threaten to fundamentally weaken the NSITF governance structure, erode accountability and transparency, and expose the Fund to undue political interference,” the OPSN said, adding that such changes contravene International Labour Organisation (ILO) Conventions 102, 144, and 87, which Nigeria has ratified.
The OPSN emphasised that the NSITF’s tripartite structure—comprising government, employers, and labour—was established to safeguard contributors’ interests and ensure the Fund’s independence. It warned that altering this structure could lead to mismanagement, inefficiency, and a loss of public trust.
According to the OPSN, the NSITF’s Management Board currently serves as the Trustee of the Fund and provides vital oversight. Replacing it with a politically dominated structure, the group argued, would undermine the Fund’s autonomy and the security of millions of Nigerian workers and their families.
“It is important to clarify that no two agencies are managing the NSITF,” the OPSN stated. “The NSITF is the sole statutory agency responsible for implementing the Employees’ Compensation Act (ECA). Any attempt to create parallel structures under the guise of reform would contravene international standards and expose the Fund to confusion and mismanagement.”
The OPSN further expressed concern that the Senate is prioritising amendments to the NSITF Act over the passage of the long-overdue Nigeria Labour Law Bill. The group noted that the Labour Law Bill, which has garnered broad stakeholder consensus, is crucial for modernising Nigeria’s labour and employment framework, enhancing workplace safety, and fostering social dialogue.
“We are deeply concerned that, while the Senate prioritises an unnecessary and potentially damaging amendment to the NSITF Act, the long-overdue Nigeria Labour Law remains stalled,” the OPSN said.
The group called on President Bola Ahmed Tinubu and the President of the Senate, Senator Godswill Akpabio, to intervene and halt what it described as a “charade” by the Senate Committee on Labour and Employment, chaired by Senator Diket Plang. It urged lawmakers to instead focus on passing the Nigeria Labour Law, which it said is more pressing and beneficial to the country’s workforce and economy.
