A major dispute has broken out between Nigeria’s leading business organisations and the country’s Senate over a proposed law to change the management of the Nigeria Social Insurance Trust Fund (NSITF).
The Organised Private Sector of Nigeria (OPSN), which includes the Nigeria Employers’ Consultative Association (NECA), the Manufacturers Association of Nigeria (MAN), and the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has strongly rejected the planned amendments to the NSITF Act.
In a letter to the Senate President, Godswill Akpabio, the OPSN described the Senate’s move as “a dangerous attempt to hijack and politicise the management of workers’ social protection funds.”
The group warned that the proposed changes, which have already passed a second reading in the Senate, threaten the “transparency, accountability and the very foundation of the Fund’s governance structure.”
The core of the disagreement centres on the tripartite nature of the NSITF’s current board, which includes representatives from the government, employers, and workers. The OPSN argues that the Senate’s amendment seeks to reduce the influence of employers and workers, who are the main contributors to the fund, while increasing control through political appointments.
In its letter, the OPSN stated: “The NSITF was founded on a tripartite structure, representing Government, Employers, and Labour, in strict alignment with International Labour Organisation (ILO) Conventions.”
It emphasised that Nigeria has ratified these international agreements, which require social security institutions to be managed with the “full and effective participation of social partners.” The group warned that the Senate’s plan would violate these standards.
“The proposed amendment seeks to reduce the representation and influence of employers and workers… while increasing government control through political appointments,” the OPSN letter read. “This approach is not only contrary to the spirit and letter of the ILO Conventions but also undermines the principles of good governance.”
The private sector group also criticised the Senate’s priorities, pointing out that a more critical piece of legislation, the long-delayed Nigeria Labour Law Bill, remains stalled.
“We are deeply concerned that, while the Senate prioritises an unnecessary and potentially damaging amendment to the NSITF Act, which has no operational defects, the long-overdue Nigeria Labour Law remains stalled,” the OPSN lamented.
The OPSN has called on President Bola Ahmed Tinubu and Senate President Akpabio to intervene and halt the legislative process. It reaffirmed its commitment to working with the government and labour unions to protect the institution.
“The NSITF, as a cornerstone of Nigeria’s social protection system, must not be politicised or weakened,” the group stressed. It warned that the “future of industrial peace and social protection” in Nigeria depends on resisting any attempt to compromise the NSITF’s integrity.
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