Business Leaders Reject NSITF Amendment, Warn Against Erosion of Tripartite Structure
The Organised Private Sector of Nigeria (OPSN), comprising leading business associations including the Nigeria Employers’ Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has rejected the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act currently before the Senate.
The group warned that the amendment, if passed, would politicise the management of workers’ social protection funds, erode accountability, and violate international labour conventions to which Nigeria is a signatory.
In a statement made available to The PUNCH on Sunday, OPSN expressed serious concern over the amendment being championed by the Senate Committee on Labour and Employment, chaired by Senator Diket Plang. The proposed legislation, which has already passed second reading, seeks to alter the governance structure of the NSITF.
The OPSN — which also includes the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small Scale Industrialists (NASSI), and 25 other employers’ federations — jointly signed a protest letter to the Senate President through the Directors-General of its five major member organisations.
According to the letter, “These amendments threaten to fundamentally weaken the NSITF governance structure, erode accountability and transparency, and expose the Fund to undue political interference.”
The group emphasised that the NSITF was established on a tripartite structure—representing government, employers, and labour—in alignment with International Labour Organisation (ILO) Conventions 102, 144, and 87, which Nigeria has ratified. These conventions, it noted, require that social security institutions be managed with the full and effective participation of social partners, ensuring the protection of contributors’ and beneficiaries’ interests from political or unilateral government control.
“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,” OPSN said. “This approach is contrary to the spirit and letter of the ILO Conventions and undermines good governance, transparency, and accountability.”
The private sector coalition cited ILO Recommendation 202 on Social Protection Floors, which emphasises the need for participatory, transparent, and accountable management of social protection systems, warning against the dangers of politicisation and exclusion of key stakeholders.
According to OPSN, the NSITF Management Board currently serves as the trustee and conscience of the Fund, providing necessary checks and balances to ensure that contributors’ resources are managed prudently and transparently.
“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,” the statement added.
The OPSN also clarified that there are no parallel agencies managing the NSITF, describing it as the sole statutory body responsible for implementing the Employees’ Compensation Act. It warned that any attempt to create competing structures under the guise of reform would contravene international standards and risk confusion and mismanagement.
The group further cautioned that it would not accept any amendment that diminishes the roles of organised labour and employers in managing the Fund, being the primary contributors to it.
“The OPSN and its members are prepared to employ all legitimate and legal means, including recourse to international labour standards and ILO supervisory mechanisms, to protect the NSITF from actions that threaten its effectiveness, sustainability, and compliance with global best practices,” the stakeholders declared.
Beyond rejecting the amendment, the OPSN criticised the Senate’s legislative priorities, questioning why the proposed NSITF amendment was receiving attention while the Nigeria Labour Law Bill—which seeks to modernise labour and employment relations—remains pending.
“This Bill is critical for the future of work in Nigeria,” OPSN stated. “It is designed to address gaps in the nation’s labour laws, improve dispute resolution, enhance workplace safety, promote social dialogue, and clarify the rights and responsibilities of all parties. Its continued delay undermines efforts to align Nigeria’s labour framework with international standards and support sustainable economic growth.”
The OPSN concluded by urging the National Assembly to prioritise reforms that strengthen Nigeria’s industrial relations system rather than weaken established social protection institutions.
“The NSITF is a cornerstone of Nigeria’s social security system and must not be politicised or weakened,” the group insisted. “Its governance must remain firmly rooted in tripartism, transparency, and accountability in line with ILO Conventions and international best practices.”
