The Organized Private Sector of Nigeria (OPSN) has strongly opposed the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act, describing it as a dangerous attempt by the Senate to politicize and take control of workers’ social protection funds. The group, which includes the Manufacturers Association of Nigeria (MAN), the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the Nigeria Association of Small and Medium Enterprises (NASME), and the Nigeria Association of Small Scale Industrialists (NASSI), warned that the move threatens transparency, accountability, and the very foundation of the Fund’s governance.
In a letter to the Senate President signed by the Directors-General of its member bodies, OPSN urged the Senate to halt the legislative process, which has already passed second reading. It argued that the proposed amendment would weaken the NSITF’s tripartite structure, comprising government, employers, and labor, and violate international labor standards. According to OPSN, the NSITF was established in accordance with International Labour Organisation (ILO) Conventions 102, 144, and 87, all of which Nigeria has ratified and which require the full and balanced participation of social partners in managing social security institutions.
The group stressed that the proposed changes would reduce the influence of employers and workers, who are the main contributors and beneficiaries of the Fund, while increasing government control through political appointments. Such a move, it said, would contradict ILO conventions and undermine good governance, transparency, and accountability, which are essential for managing social security systems effectively. It also cited ILO Recommendation 202, which warns against the politicization of social protection systems and emphasizes the need for participatory governance.
OPSN further noted that the current NSITF Management Board plays a vital role as the trustee and conscience of the Fund, ensuring that contributors’ resources are managed prudently and transparently. Replacing this board with a politically dominated structure, it warned, would destroy the Fund’s autonomy, open the door to mismanagement, and put the financial security of millions of Nigerian workers and their families at risk.
The group clarified that the NSITF is the sole statutory body mandated to implement the Employees’ Compensation Act (ECA), dismissing claims that any other agency performs the same function. It warned that creating parallel structures or altering the current framework under the guise of reform would violate international standards, eliminate existing safeguards, and create confusion and mismanagement within the system.
OPSN also criticized the Senate for prioritizing the NSITF amendment instead of focusing on the long-delayed Nigeria Labour Law Bill, which it described as more urgent and necessary. The group said the Labour Law Bill is essential for addressing gaps in employment legislation, improving dispute resolution, enhancing workplace safety, and strengthening social dialogue, all crucial for modernizing Nigeria’s labor system.
Finally, OPSN called on President Bola Ahmed Tinubu and Senate President Godswill Akpabio to intervene and stop the Senate Committee on Labour and Employment from proceeding with the amendment. It emphasized that the NSITF must remain non-political, transparent, and accountable, in line with international best practices. The group reaffirmed its commitment to working with government and organized labor to strengthen, rather than weaken, institutions that protect Nigerian workers, stressing that the nation’s industrial peace and social protection depend on preserving the integrity of the NSITF.
