Labour, NECA slam proposed NSITF amendments, demand full tripartite review

Organised Labour and the Nigeria Employers’ Consultative Association (NECA) have strongly rejected the proposed amendments to the Nigeria Social Insurance Trust Fund (NSITF) Act.

They warned that the planned changes violate international labour standards and threaten the long-term sustainability of the Fund.

Their position was made clear on Monday during a Senate public hearing on the amendment Bill, where the Nigeria Labour Congress (NLC), led by its President, joined NECA in calling for the immediate withdrawal of the proposal.

Both Labour and NECA argued that the amendments, as drafted, would undermine the governance structure of the NSITF, weaken stakeholder participation, and expose the Fund to avoidable legal and financial risks.

“The foundation of this amendment is inconsistent with global best practice,” NECA’s Director-General, Mr Adewale-Smatt Oyerinde, said after the hearing.

He cited several International Labour Organization (ILO) Conventions and Recommendations that emphasise Tripartite governance as a critical safeguard for social insurance systems.

According to him, the proposed changes, which would alter representation, financial oversight, and administrative processes—could destabilise the NSITF rather than strengthen it.

“Weakening Tripartite representation and concentrating financial responsibility in a single office is a recipe for chaos in the social insurance ecosystem,” Oyerinde warned.

He stressed that while NECA supports reforms aimed at improving transparency, efficiency and accountability within the Fund, such reforms must never erode institutional integrity or sideline key stakeholders.

“We are not opposed to reforms. However, any reform must strengthen institutions, enhance transparency, promote ethical governance, and ensure long-term sustainability,” he said.

Organised Labour echoed NECA’s concerns, insisting that any amendment to the NSITF Act must originate from—and be validated by a Tripartite process involving government, employers, and workers. This model, they said, remains the globally recognised standard for shaping social security systems.

Both parties urged the Senate to withdraw the amendment Bill and convene an inclusive review of the NSITF Employees’ Compensation Act (ECA), ensuring that any new legislation aligns with Nigeria’s broader ambition to build a holistic and sustainable national social security framework.

Oyerinde concluded by advising the National Assembly to “allow the Tripartite to undertake a consultative review of the NSITF/ECA Act, while a new Bill focused on a holistic social security system for the nation is enacted.”

The Senate is expected to review feedback from stakeholders before determining the fate of the proposed amendments.