OPSN Opposes Senate’s Proposed Amendments to NSITF, Cites Threat to Workers’ Social Security and International Standards

OPSN Opposes Senate’s Proposed Amendments to NSITF, Cites Threat to Workers’ Social Security and International Standards

The Organised Private Sector of Nigeria (OPSN) has strongly opposed the proposed amendments to the Nigeria Social Insurance Trust Fund (NSITF) Act, describing the move by the Senate as a dangerous effort to politicize and hijack the management of workers’ social protection funds.

OPSN, which includes the Manufacturers Association of Nigeria (MAN), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers’ Consultative Association (NECA), Nigeria Association of Small and Medium Enterprises (NASME), and Nigeria Association of Small Scale Industrialists (NASSI), warned that the amendments threaten the transparency, accountability, and core governance principles of the NSITF.

In a letter addressed to the Senate President and signed by the Directors-General of the five organizations, OPSN urged the Senate to halt the legislative process, which has already progressed to the second reading. The group argued that the proposed changes would undermine the Fund’s tripartite structure—comprising government, employers, and workers—and breach international labor standards.

The statement emphasized: “These amendments pose a serious risk to the governance of the NSITF, risking erosion of accountability and transparency, and exposing the Fund to political interference.” It highlighted that the NSITF was established based on a tripartite model aligned with International Labour Organization (ILO) conventions—specifically, Convention 102 on Social Security (Minimum Standards), Convention 144 on Tripartite Consultation, and Convention 87 on Freedom of Association and the Right to Organize. Nigeria’s ratification of these conventions mandates that social security institutions be managed with the full involvement of social partners, protecting the interests of contributors and beneficiaries from political or unilateral government control.

OPSN further criticized the amendments for reducing the influence of employers and workers—main contributors and beneficiaries—while expanding government control through political appointments. The group argued that such changes are contrary to the principles enshrined in ILO conventions and undermine good governance, transparency, and accountability vital for managing social security funds effectively. They also referenced ILO Recommendation 202 on Social Protection Floors, which advocates for participatory, transparent, and accountable social protection systems, cautioning against politicization and stakeholder exclusion.

The group stressed that the current NSITF Management Board acts as the trustee and guardian of the Fund’s integrity, ensuring prudent management of resources. Weakening or replacing this Board with a politicized structure would compromise the Fund’s autonomy, increase the risk of mismanagement, and threaten the financial security of millions of Nigerian workers and their families.

Additionally, OPSN clarified that the NSITF is solely responsible for implementing the Employees’ Compensation Act (ECA). Any attempt to create parallel agencies or alter this statutory arrangement would violate international standards and could lead to confusion and mismanagement, they warned.

The private sector coalition also criticized the Senate for prioritizing what they call an “unnecessary and potentially damaging” amendment over more urgent legislative reforms, such as the long-delayed Nigeria Labour Law Bill. They expressed concern that while such an important bill—designed to address critical issues in labor rights, dispute resolution, workplace safety, and social dialogue—remains stalled, the Senate is focusing on amendments that lack operational flaws.

The group called on President Bola Ahmed Tinubu and Senate President Godswill Akpabio to intervene and halt the Senate Committee on Labour and Employment’s efforts. They reaffirmed that the NSITF, as a pillar of Nigeria’s social protection system, must remain under a governance framework rooted in tripartism, transparency, and accountability—principles supported by international conventions.

OPSN concluded by reaffirming its commitment to collaborating with government and labor to strengthen, not weaken, institutions that protect Nigerian workers’ welfare. They warned that the future of industrial peace and social security depends on resisting any attempts to undermine the integrity of the NSITF.