NLC, Private Sector Reject NSITF Amendment Bill

The Nigeria Labour Congress (NLC) has described the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act as a brazen and unpatriotic act of class warfare and a grave assault on the principles of tripartism.

The NLC, along with the Organised Private Sector (OPS) and the Nigerian Law Reform Commission (NLRC), has called for the outright withdrawal of the bill, which seeks to repeal the NSITF and Employees’ Compensation Acts and establish the Nigeria Social Security Trust Fund (NSSTF) in its place.

“The bill is a grave assault on the principles of tripartism and a blatant attempt to undermine workers’ rights,” said Joe Ajaero, NLC President at public hearing in Abuja on Monday.

“We will not support any attempt to undermine workers’ rights and will take all necessary steps to protect the interests of Nigerian workers.”

The proposed amendment aims to merge existing laws into a single, efficient framework to create a central institution for social security, expanding workers’ protection to both formal and informal sectors.

However, stakeholders have expressed concerns that the bill could lead to excessive government control, weakening the Fund’s governance and undermining other stakeholders who contribute to the Fund.

The OPS, represented by the Nigerian Employers Consultative Association (NECA), aligned with the NLC, describing the bill as “fundamentally flawed” and calling for its immediate withdrawal.

“The governance structure proposed by the bill could eventually kill the Fund,” said Thompson Akpabio, NECA representative.

The NLRC also faulted the amendment process, stating that the Commission was not duly informed ahead of time, as required by law.

“You cannot hold a public hearing to amend laws in Nigeria without involving the NLRC,” said Prof. Larry Chukwu, NLRC Commissioner.

The NSITF, however, welcomed the amendment, stating that it retains the power invested in the Fund.

The Managing Director, Oluwaseun Faleye, clarified that the government at all levels contributes to the Fund, contrary to claims by the OPS.

The Minister of Labour and Employment, Dr Mohammed Dingyadi, has also noted the concerns raised by stakeholders and called for expanded consultation.

Persecondnews reports that the Senate Committee on Employment, Labour and Productivity has promised to seek further input from diverse stakeholders to enrich the final act.