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By Bimbola Oyesola
As public hearing opens this week at the National Assembly for an amendment to the Nigerian Social Insurance Trust Fund (NSITF) Act, members of the organised private sector of Nigeria (OPSN) have issued a strong warning, urging the Senate to halt its ongoing efforts to amend the act.
The group says the proposed changes pose a direct threat to employers, workers and the stability of Nigeria’s social protection system.
The alarm was raised after the Senate Committee on Labour and Employment, chaired by Senator Diket Plang, advanced a bill seeking to overhaul NSITF governance. The proposal has already passed a second reading, triggering anxiety within the private sector.
In a letter addressed to the Senate President and signed by the Directors-General of MAN, NACCIMA, NECA, NASME and NASSI, the OPSN said the amendment would “fundamentally weaken the NSITF governance structure, erode accountability and expose the Fund to undue political interference.”
According to the OPSN, the NSITF was established on a tripartite foundation involving government, employers and labour, an arrangement aligned with several International Labour Organisation (ILO) conventions that Nigeria has ratified. These include Convention 102 on Social Security, Convention 144 on Tripartite Consultation and Convention 87 on Freedom of Association.
“The spirit of these conventions is clear,” the OPSN wrote. “Social security institutions must be managed with the full participation of social partners. Any deviation exposes the system to unilateral political control and jeopardises the rights of contributors.”
The private sector group warned that the proposed amendment seeks to reduce the representation and influence of employers and workers, who are the main funders and beneficiaries of the scheme, while expanding government dominance.
The OPSN leaders described the approach as “contrary to international standards and a recipe for opaque, politically driven decision-making.”
Citing ILO Recommendation 202, which emphasises participatory governance in social protection systems, the OPSN said the amendment risks introducing “dangerous levels of politicisation,” potentially undermining transparency and public trust in the NSITF.
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The OPSN emphasised that the current NSITF Management Board functions as the conscience and trustee of the Fund, providing essential checks to ensure that contributions are managed prudently. “Diluting or displacing this board with politically appointed structures would open the door to mismanagement and threaten the security of millions of workers,” the group cautioned.
Drawing on global precedent, OPSN leaders noted that countries which politicised their social security systems have suffered financial instability, governance breakdowns and a collapse in worker confidence. “Nigeria must not repeat these mistakes,” the group warned.
Responding to claims that parallel agencies are managing aspects of the Fund, the OPSN insisted that the NSITF is the sole statutory institution responsible for the Employees’ Compensation Act (ECA). “Any attempt to tamper with this arrangement would remove critical safeguards and create confusion,” the group stated.
The members of the OPSN also criticised the Senate for prioritising what it described as an unnecessary amendment, instead of focusing on the long-overdue Nigeria Labour Law Bill. According to OPSN, the Labour Law Bill is vital for strengthening workplace safety, dispute resolution and social dialogue, but has remained stuck in the legislative process.
“We are deeply concerned that a crucial Bill designed to modernise Nigeria’s labour relations framework is being sidelined,” the OPSN said. “Meanwhile, lawmakers are pushing an amendment that could cripple a key national social protection institution.”
The OPSN argued that the Labour Law Bill enjoys broad stakeholder consensus and would contribute significantly to economic growth and industrial harmony if passed. Its delay, the group added, continues to frustrate efforts to align Nigeria’s labour policies with international best practices.
As part of its appeal, the OPSN called on President Bola Ahmed Tinubu and Senate President Godswill Akpabio to intervene urgently. The group urged them to halt what it described as a “charade” and redirect legislative energy toward completing and passing the Labour Law Bill.
“The NSITF must not be politicised or weakened,” the OPSN stressed. “Its governance must remain rooted in tripartism, transparency and accountability, as demanded by ILO conventions.”
Despite its concerns, the OPSN said it remains committed to collaborating with government and labour unions to strengthen institutions that protect Nigerian workers. “The future of Nigeria’s social protection and industrial peace depends on resisting any attempt to compromise the integrity of the NSITF,” the group concluded.
