NSITF amendment bill will cripple Fund – Labour, NECA
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By Victor Ahiuma-Young
Organized Labour and the Nigeria Employers’ Consultative Association, NECA, have rejected the proposed amendments to the Nigeria Social Insurance Trust Fund, NSITF, Act. They called for the immediate withdrawal of the bill and warning that its passage could cripple the Fund.
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At a Senate public hearing held on Monday, December 1, leaders of the Nigeria Labour Congress, NLC, and top officials of NECA expressed strong opposition to the bill. They insisted that the draft legislation undermines international labour standards and threatens the stability of the country’s social insurance system.
The labour and employer groups argued that the proposed amendments would weaken the NSITF rather than strengthen it, exposing the Fund to legal, administrative, and financial vulnerabilities.
They insisted that any review of the NSITF Act must follow a tripartite consultation process involving government, employers, and workers — a model recognized globally and endorsed by International Labour Organization, ILO, conventions.
NECA
Director-General of NECA, Mr. Adewale-Smatt Oyerinde, who spoke to Vanguard after the hearing, described the foundations of the bill as deeply troubling.
According to him, “Our position with NLC remains that the foundation of this amendment is inconsistent with global best practice, as enshrined in several ILO Conventions and Recommendations.
“Weakening tripartite representation and governance, and concentrating financial responsibility in a single office, is a recipe for chaos in the social insurance ecosystem.”
Oyerinde emphasized that while employers are not opposed to reforms aimed at improving efficiency, such reforms must not erode the institutional integrity of the NSITF nor sideline key stakeholders.
“We support reforms that strengthen institutions, enhance transparency, and ensure ethical governance.
But this bill does the opposite. We therefore urge the Senate to withdraw it immediately and subject it to proper tripartite consultation.”
The NECA Director General cautioned the lawmakers that passing the amendments in their current form would jeopardize the sustainability and credibility of the NSITF.
He insisted that the National Assembly should allow social partners to undertake a comprehensive consultative review of the NSITF/ECA Act, while lawmakers focus on creating a broader, holistic social security framework for the country.
Oyerinde added that both employers and organized Labour are united in opposition, advising the Senate to reconsider the proposed amendment, saying forcing it through could destabilize one of Nigeria’s most critical social protection institutions.
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