The Organised Private Sector of Nigeria (OPSN) has strongly rejected the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act, describing the move by the Senate as a dangerous attempt to politicise and hijack the management of workers’ social protection funds.
The OPSN—which comprises 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 amendment threatens the transparency, accountability, and stability of the NSITF’s governance structure.
In a letter addressed to the Senate President, Godswill Akpabio, and signed by the Directors-General of the five member-organisations, the OPSN urged the Senate to immediately halt the legislative process, which has already passed second reading. The group insisted that the proposed changes would undermine the Fund’s tripartite structure and contravene international labour standards.
“These amendments threaten to fundamentally weaken the NSITF’s governance structure, erode accountability and transparency, and expose the Fund to undue political interference,” the OPSN declared.
The group emphasised that the NSITF was founded on a tripartite framework representing government, employers, and labour, in accordance with International Labour Organisation (ILO) Conventions 102, 144, and 87, all of which Nigeria has ratified. These conventions, the OPSN noted, guarantee that social security institutions must be managed with the full and effective participation of all social partners to safeguard contributors and beneficiaries from political control.
According to the OPSN, the Senate’s proposed amendment seeks to reduce the representation and influence of employers and workers—who are the primary contributors to the Fund—while increasing government dominance through political appointments. The group argued that such changes contradict the spirit of the ILO Conventions and violate the principles of good governance, transparency, and accountability essential for the management of social security funds.
“The ILO’s Recommendation 202 on Social Protection Floors further underscores the need for participatory, transparent, and accountable governance in social protection systems, warning against politicisation and lack of stakeholder involvement,” the OPSN added.
The organisation stressed that the NSITF’s current Management Board serves as the trustee and conscience of the Fund, ensuring prudent and transparent management of contributors’ resources. Weakening or replacing this board with a politically dominated structure, it warned, would erode the Fund’s autonomy, encourage mismanagement, and jeopardise the social security of millions of Nigerian workers and their families.
“It is important to clarify that the NSITF is the sole statutory agency 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, mismanagement, and political abuse,” the OPSN stated.
The private sector coalition also faulted the Senate for prioritising what it described as an “unnecessary and potentially damaging amendment” instead of addressing the more urgent passage of the long-delayed Nigeria Labour Law Bill.
“We are deeply concerned that while the Senate prioritises an unnecessary amendment to the NSITF Act—which has no operational defects—the long-overdue Nigeria Labour Law remains stalled,” the OPSN lamented.
The group maintained that the Nigeria Labour Law Bill is critical to the future of work in the country, as it addresses gaps in labour and employment laws, enhances workplace safety, promotes social dialogue, and strengthens dispute resolution mechanisms.
The OPSN therefore called on President Bola Ahmed Tinubu and Senate President Godswill Akpabio to intervene and halt the process initiated by the Senate Committee on Labour and Employment.
“The NSITF, as a cornerstone of Nigeria’s social protection system, must not be politicised or weakened,” it warned. “Its governance must remain firmly rooted in tripartism, transparency, and accountability as enshrined in ILO Conventions and international best practices.”
Reaffirming its commitment to collaborate with government and organised labour, the OPSN vowed to continue advocating for strong, independent, and transparent institutions that protect the welfare and security of Nigerian workers.
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