Private Sector Warns Senate Against Politicising NSITF, Rejects Proposed Amendment

 

By Chinedu Echianu

The Organised Private Sector of Nigeria (OPSN) has strongly opposed the Senate’s proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act, warning that the move could erode transparency, weaken governance, and expose the Fund to political control.

In a letter to Senate President Godswill Akpabio, the OPSN — a coalition of major business groups including the Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Association of Small and Medium Enterprises (NASME), and Nigeria Association of Small Scale Industrialists (NASSI) — described the amendment as a threat to the Fund’s integrity.

The group’s position, jointly signed by the Directors-General of the five organisations, came after the amendment sponsored by the Senate Committee on Labour and Employment, chaired by Senator Diket Plang, passed its second reading.

“These amendments threaten to fundamentally weaken the NSITF governance structure, erode accountability and transparency, and expose the Fund to undue political interference,” OPSN said.

“The NSITF was founded on a tripartite structure representing government, employers, and labour — in line with International Labour Organisation (ILO) conventions that Nigeria has ratified.”

According to the OPSN, the proposed legislation seeks to reduce the influence of employers and workers, who are the main contributors and beneficiaries of the Fund, while granting more control to government through political appointments.

The group warned that such changes would contradict international labour standards — including ILO Conventions 102, 144, and 87 — and undermine the principles of good governance and accountability in social security management.

“Weakening or replacing the current management board with a politically dominated structure would erode the Fund’s autonomy, open the door to mismanagement, and jeopardise the welfare of millions of Nigerian workers,” the statement continued.

The OPSN also dismissed claims that multiple agencies manage the NSITF, insisting that the Fund remains the sole statutory body responsible for implementing the Employees’ Compensation Act (ECA).

“Any attempt to create parallel structures or alter this arrangement under the guise of reform would remove existing safeguards and expose the Fund to confusion and mismanagement,” the group stated.

Beyond the NSITF controversy, the OPSN expressed disappointment that the Senate has neglected the long-overdue Nigeria Labour Law Bill, which it said is crucial for modernising Nigeria’s labour relations and aligning them with international best practices.

“While the Senate is prioritising an unnecessary amendment to the NSITF Act, the Nigeria Labour Law Bill — which enjoys broad stakeholder support — remains stalled,” OPSN said.

“Passing this Bill is essential to improving workplace safety, promoting social dialogue, and supporting sustainable economic growth.”

The group urged President Bola Tinubu and Senate President Akpabio to intervene and stop what it described as a “misguided legislative effort,” urging the National Assembly to instead focus on passing the Nigeria Labour Law Bill.

“The NSITF is a cornerstone of Nigeria’s social protection system and must not be politicised or weakened,” OPSN said. “Its governance should remain rooted in tripartism, transparency, and accountability as enshrined in ILO conventions and international best practices.”

The OPSN reaffirmed its commitment to working with government and organised labour to strengthen — not weaken — the country’s social protection institutions, insisting that the future of Nigeria’s industrial peace depends on preserving the integrity of the NSITF.