Organised labour and the Nigeria Employers’ Consultative Association (NECA) have strongly opposed the proposed amendments to the Nigeria Social Insurance Trust Fund (NSITF) Act, describing the bill as flawed, unsafe, and inconsistent with international labour standards.
The two bodies made their position known on Monday during a Senate public hearing held in Lagos, where the Nigeria Labour Congress (NLC), led by its President, Joe Ajaero, joined NECA in calling for an immediate withdrawal of the bill.
Both labour and employers unanimously condemned the proposed changes, insisting that the amendment would neither strengthen the NSITF nor improve its operations, contrary to claims by the bill’s sponsors.
Instead, they warned that the proposed law could expose the fund to legal, administrative and financial vulnerabilities, ultimately jeopardising its long-term sustainability and credibility.
Speaking after the hearing, NECA’s Director-General, Adewale-Smatt Oyerinde, reiterated the organisation’s deep concerns regarding the intent and direction of the bill.
“Our position remains that the foundation of this amendment is inconsistent with global best practices and key International Labour Organisation conventions,” Oyerinde said.
He stressed that weakening tripartite representation — which ensures that government, employers, and workers are equally involved in the fund’s governance — would distort the balance required for a functional and transparent 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.
Oyerinde emphasised that while NECA welcomed genuine reforms that would modernise the system, any amendment must focus on strengthening institutions, improving transparency, and protecting the fund’s long-term viability.
“We are not opposed to reforms; however, they must enhance transparency and institutional integrity while safeguarding the fund’s sustainability. We therefore urge the Senate to withdraw this bill and return it to proper tripartite consultation without delay.”
He further advised the National Assembly to allow a comprehensive tripartite review of both the NSITF and Employees’ Compensation Act (ECA) before drafting any new legislation, stating that an effective social security structure must be inclusive and stakeholder-driven.
According to him, any new bill emerging from such a process would better support the creation of a holistic and resilient national social security system.