Organised Labour, Employers Fault Proposed Amendments to NSITF Act Over Governance, Compliance Concerns
Nigeria’s major labour and employer groups have strongly opposed the proposed amendments to the NSITF Act, warning that the changes could weaken the country’s social insurance architecture and expose the system to far-reaching financial, administrative, and governance vulnerabilities.
At a Senate public hearing held in Lagos on Tuesday, leaders of the Nigeria Labour Congress (NLC) and the Nigeria Employers’ Consultative Association (NECA) delivered a unified position rejecting the draft legislation.
They argued that the proposed amendments to the NSITF Act are inconsistent with global labour standards and fall short of the principles that guide social security governance across established international jurisdictions.
NLC President, Joe Ajaero, and NECA’s leadership stressed that the bill should be withdrawn immediately, insisting that any reform of the social insurance ecosystem must emerge from robust tripartite consultations involving government, employers, and organised labour.
According to them, the current process, which has largely excluded critical stakeholders, risks producing a law that will destabilise the fund rather than strengthen it.
Stakeholders Warn of Legal and Financial Risks
Both organisations cautioned that the proposed amendments to the NSITF Act could create loopholes that may trigger avoidable litigation, distort the fund’s administrative structure, and compromise its long-term financial safety.
They argued that rather than fortifying the NSITF, the amendments would alter the institution’s governance framework in ways that may undermine accountability, transparency, and operational efficiency.
In separate presentations, labour and employer representatives said the amendments could weaken safeguards designed to protect workers who depend on the NSITF’s Employee Compensation Scheme and other social protection services.
Stakeholders noted that the provisions, if passed into law, may damage public confidence in the fund and interfere with established procedures that ensure financial prudence and oversight.
NECA Condemns ‘Centralisation of Control’
Reacting to the Senate’s proposals after the public hearing, NECA’s Director-General, Adewale-Smatt Oyerinde, expressed deep reservations about both the intent and content of the bill.
He maintained that the reforms appear to contradict international best practices, particularly those promoted by the International Labour Organisation (ILO).
“Our position remains that the foundation of this amendment is inconsistent with global best practice and key international labour organisation conventions,” he said.
Oyerinde argued that concentrating control of the NSITF’s finances and administration in a single office, as provided in parts of the bill, could erode institutional checks and balances.
According to him, such centralisation increases the risk of mismanagement and could trigger systemic instability within Nigeria’s social insurance system.
“Weakening tripartite representation and centralising financial control in one office is a recipe for chaos in the social insurance system,” he added.
He emphasised that NECA is not opposed to reform but will only support measures that promote institutional strengthening, accountability, and long-term sustainability.
Labour and Employers Push for Tripartite Review Process
Both NLC and NECA reiterated that reforms affecting the NSITF must emerge from a transparent, inclusive tripartite review process, rather than unilateral legislative action.
They urged the National Assembly to initiate a stakeholder-driven review of both the NSITF Act and the Employee Compensation Act (ECA) before drafting any new consolidated legislation.
Oyerinde argued that a modernised social insurance framework can only be achieved when workers, employers, and government agencies collaboratively assess the system’s strengths, weaknesses, and gaps.
He maintained that a new bill should naturally evolve from such a consultative review—not from a standalone legislative proposal that excludes those who fund and operate the system.
Background: Senate Seeks Consolidation of NSITF and ECA Acts
The controversy follows the Senate’s decision on October 21 to pass for second reading a bill seeking to consolidate the NSITF Act and the Employee Compensation Act into a unified social insurance law.
Lawmakers sponsoring the initiative say their intention is to strengthen accountability, streamline administration, and improve benefits for workers and employers.
The NSITF itself has expressed support for the initiative.
The organisation has backed the proposed Nigeria Social Security Trust Fund Bill, 2025, arguing that the consolidation would enhance Nigeria’s social protection landscape and align the fund more closely with emerging global frameworks.
However, organised labour and private-sector employers believe the bill—particularly in its current form—poses more threats than opportunities.
Why the Proposed Amendments Remain Contentious
Experts following the development highlight several contentious areas in the proposed amendments to the NSITF Act:
Reduced Tripartite Representation:
Labour and employers say the bill weakens their roles in governance, shifting more authority to government appointees.
Centralised Financial Oversight:
Critics argue that placing financial powers in a single office contradicts global standards that emphasise shared oversight and risk management.
Potential Administrative Overlaps:
The consolidation of two laws without a detailed transition plan may lead to administrative conflicts, delays, and duplication of functions.
Possible Constitutional Questions:
Legal practitioners warn that some provisions may challenge existing labour laws and could be contested in court.
The fears, according to analysts, stem from the possibility that the reforms may create a system vulnerable to politicisation and unfavourable interference—compromising workers’ protections and employers’ contributions.
A Crossroads for Social Insurance Governance
As the National Assembly continues work on the bill, the debate over the proposed amendments to the NSITF Act signals a defining moment for Nigeria’s social protection framework.
The outcome will determine whether the NSITF evolves into a modern, resilient institution or becomes encumbered by governance flaws that hinder its capacity to support injured workers, survivors, and vulnerable families.
For now, organised labour and employers say they will continue pushing for a transparent, consultative, and consensus-driven amendment process that prioritises workers’ welfare and institutional stability.
About The Author
