New Excise Bill at variance with int’l standards, OPS, labour tell NASS

The Nigeria Employers’ Consultative Association (NECA) and Organised Labour 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.

The bill, which seeks to revoke the NSITF and Employees’ Compensation Acts, plans to establish the Nigeria Social Security Trust Fund (NSSTF) in its place. A major thrust of the bill, which has already passed the second reading in the Senate, is to merge existing laws into a single, efficient framework to create a central institution for social security. It also aims to expand workers’ protection to both formal and informal sectors, with a view to ensuring accountability.

During the public hearing on Monday, representatives of organised labour expressed their opposition to the bill.

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Both parties called for the immediate withdrawal of the proposed amendments and the commencement of a tripartite consultation process involving government, employers, and workers, as 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.

Adewale-Smatt Oyerinde, the director-general of NECA, reiterated the organisation’s deep concerns over the content and intent of the proposed legislation, saying that “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 weakening Tripartite representation and governance, and concentrating financial responsibility in a single office, is a recipe for chaos in the social insurance ecosystem.”

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He further emphasised that while NECA supports reforms aimed at improving efficiency and governance, such reforms must not erode institutional integrity or compromise stakeholder involvement, stating that “We are not opposed to reforms; However, any reform must strengthen institutions, enhance transparency, promote good and ethical governance, and ensure the long-term sustainability of the Fund.”

Both parties urge the Senate to withdraw this bill and subject it to proper tripartite consultation, and that, as a matter of fundamental importance, the National Assembly should allow the tripartite to do a consultative review of the NSITF/ECA Act. At the same time, the National Assembly enacts a new Bill focused on a holistic social security system for the nation.

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