Private Sector Groups Reject Senate’s NSITF Amendment, Warn Against Politicisation

The Organised Private Sector of Nigeria (OPSN) has strongly opposed the Senate’s proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act, describing it as a dangerous attempt to politicise and seize control of workers’ social protection funds.

The OPSN—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 amendment threatens transparency, accountability, and the governance structure of the Fund.

In a letter addressed to Senate President Godswill Akpabio and signed by the Directors-General of its five member organisations, the OPSN urged the Senate to halt the legislative process, which has already passed second reading. The group argued that the proposed changes would dismantle the NSITF’s tripartite governance model and violate international labour conventions.

“These amendments threaten to fundamentally weaken the NSITF 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 structure representing government, employers, and labour—aligned with International Labour Organisation (ILO) Conventions 102, 144, and 87—which mandate participatory and balanced management of social security institutions.

According to the OPSN, “The proposed amendment seeks to reduce the representation and influence of employers and workers—the main contributors and beneficiaries—while increasing government control through political appointments. This approach undermines the principles of good governance, transparency, and accountability essential for managing social security funds.”

Citing ILO Recommendation 202 on Social Protection Floors, the group stressed the need for participatory and accountable governance, warning against politicisation and limited stakeholder involvement.

The OPSN further cautioned that replacing or weakening the current NSITF Management Board with a politically dominated structure would “erode the Fund’s autonomy, encourage mismanagement, and endanger the welfare of millions of Nigerian workers and their families.”

Clarifying the Fund’s statutory authority, it stated: “The NSITF is the sole agency mandated to implement the Employees’ Compensation Act (ECA). Any attempt to create parallel structures or alter this arrangement under the guise of reform would remove existing safeguards, breach international standards, and expose the Fund to mismanagement.”

The OPSN also criticised the Senate for focusing on what it described as “an unnecessary and potentially damaging amendment,” instead of prioritising the long-delayed Nigeria Labour Law Bill.

“We are deeply concerned that while the Senate prioritises an unnecessary amendment to the NSITF Act, the crucial Nigeria Labour Law Bill remains stalled,” the group said. “This bill is vital for modernising the nation’s labour laws, improving dispute resolution, workplace safety, and promoting social dialogue.”

The OPSN called on President Bola Ahmed Tinubu and Senate President Godswill Akpabio to intervene and stop 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,” the group warned. “Its governance must remain rooted in tripartism, transparency, and accountability, as enshrined in ILO Conventions and global best practices.”

Reaffirming its commitment to collaboration with government and labour unions, the OPSN stressed that protecting the integrity of the NSITF is essential for maintaining industrial peace and safeguarding the welfare of Nigerian workers.

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