NSITF Dismisses Corruption Allegations Against Its Managing Director

By Chinedu Echianu

The Nigeria Social Insurance Trust Fund (NSITF) has dismissed as false and malicious, recent media reports alleging financial impropriety, abuse of office and diversion of funds against its Managing Director, Barrister Oluwaseun Faleye

In a statement on Tuesday issued by its management, the Fund says the allegations are not supported by verifiable facts and appear to be part of a coordinated attempt to discredit its leadership and undermine ongoing institutional reforms.

According to the NSITF, its operations are governed strictly by established statutory, financial and governance frameworks, including the Employees’ Compensation Act (ECA) 2010, Public Finance Management laws, and relevant treasury, procurement and audit regulations.

It emphasised that funds accruing to the Employees’ Compensation Fund are public trust funds subject to multiple layers of internal controls, routine internal and external audits, Board oversight and supervision by relevant government authorities.

The Fund states that at no time has the Managing Director/Chief Executive Officer operated or accessed NSITF funds outside the approved institutional banking structure.

It stressed that all NSITF monies are held exclusively in official Fund accounts and that disbursements are processed through established financial controls involving several officers, departments and approval stages.

The NSITF Management also addressed claims regarding the operation of multiple bank accounts linked to a single Bank Verification Number (BVN), noting that BVN linkage and account administration are regulated by deposit money banks and the Central Bank of Nigeria.It said the existence of multiple accounts, including dormant or non-operational ones, does not in itself constitute wrongdoing and that no evidence has been presented to show that NSITF funds were paid into any personal or third-party accounts.

On allegations that the Managing Director granted himself “unlimited approval authority,” the NSITF describes such claims as misleading. It explained that approval frameworks in public institutions operate within statutory financial regulations, procurement laws and Board oversight, and cannot override approval thresholds set by government circulars. The Fund maintained that no single officer can unilaterally appropriate or expend public funds.

The statement further clarified that while the Board provides policy direction and approves annual budgets, operational expenditures are guided by statutory and regulatory thresholds. It added that comprehensive documentation of approvals and mandates is maintained and available for review by authorised oversight bodies.

Addressing concerns about vendor payments and commissions, the NSITF said all engagements under the current administration comply with the Public Procurement Act and applicable regulations, with payments tied to contractual obligations and services rendered. Any concerns, it noted, should be addressed through lawful audit and review processes rather than media speculation.

The management linked the allegations to resistance from vested interests affected by the Fund’s ongoing reforms, including automation, digitisation, recovery of outstanding debts and broader institutional restructuring. It described the situation as “corruption fighting back.”

Reaffirming its commitment to transparency and accountability, the NSITF assured stakeholders and the public that the Employees’ Compensation Fund remains secure, claims continue to be paid, and statutory obligations are being met. It also welcomed any lawful and independent inquiry by relevant oversight authorities and pledged full cooperation with statutory review processes.

The statement concluded with assurances to Nigerian workers and employers that the integrity of the Employees’ Compensation Scheme remains intact and that the Fund remains focused on strengthening social security and expanding protection for workers nationwide.