Labour, NECA reject proposed amendment to NSITF Act

By : John Akubo, Gloria Nwafor

Date: 2 December 2025 6:53am WAT

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NECA House

NECA House

ORGANISED labour and the Nigeria Employers’ Consultative Association (NECA) have rejected the proposed amendments to the Nigeria Social Insurance Trust Fund (NSITF) Act, describing the bill as inconsistent with international standards and detrimental to sustainable governance of the fund.

While the labour unions, the Organised Private Sector (OPS), and the Nigeria Labour Regulation Commission (NLRC) strongly oppose the draft legislation, some government officials and policy advocates insist the bill remains critical to reforming social security administration in Nigeria.

At the Senate public hearing yesterday, representatives of organised labour, led by the President of the Nigeria Labour Congress (NLC), Joe Ajaero, alongside NECA, expressed their strong opposition to the bill. Both parties called for the immediate withdrawal of the proposed amendments and the commencement of a tripartite consultation process involving government, employers, and workers, which is the international best practice.

Speaking at the hearing, the two organisations emphasised that the proposed amendments do not strengthen the NSITF as intended. Instead, they warned that the changes could expose the fund to unnecessary legal, administrative, and financial risks, thereby undermining its sustainability and credibility. Ajearo said any labour law enacted without full tripartite engagement “loses its legitimacy,” noting that comprehensive reviews involving labour, government, and employers have been stalled for years.

He stressed that the NSITF is financed by employers for the benefit of workers, not the government. He warned that proposals allowing government or employers to dominate the board amount to “an affront to tripartism and a betrayal of workers’ rights.”

He criticised attempts to place the managing director under direct ministerial control, insisting that the fund’s board autonomy must be protected. Ajearo also decried poor compliance with existing labour laws, below 30 per cent, and urged stronger enforcement, especially in the informal sector. Following the public hearing, the Director-General of NECA, Adewale-SmattOyerinde, reiterated the organisation’s deep concerns over the content and intent of the proposed legislation.

He said: “Our position remains that the foundation of this amendment is inconsistent with global best practice as enshrined in several International Labour Organisation (ILO) Conventions and Recommendations.” The Minister of Labour and Employment, Muhammed Msigarin Dingyadi, however, commended the bill’s intent, stressed the need for transparent administration, employer compliance, and inclusion of informal sector workers.

He noted that the success of Nigeria’s social security reforms hinges on collaboration among government agencies, employers, and labour unions.

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