LAGOS - The Organised Private Sector of Nigeria (OPSN), has warned that the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act championed by the Senate Committee on Labour and Employment, chaired by Senator Diket Plang is to reduce the representation and influence of employers and workers, who are the main contributors and beneficiaries of the Fund as well as weaken the governance structure of the Fund
The OPSN, comprising 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 other 25 Employers Federations In a letter to the Senate President and signed by the five Directors-General, strongly objects 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 (ILO) 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."
According to OSPN, the Management Board of the NSITF, as currently constituted, serves as the Trustee and conscience of the Fund. It provides 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 (ECA). 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 reiterates that it will not accept any amendment that weakens the Fund's governance framework or diminishes the participation of organised labour and employers in its management as the 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.