***Despite Opposition, Officials Insist Social Security Reform Bill Remains Crucial
A sharp divide has emerged among key stakeholders over the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act, as labour unions, the Organized Private Sector (OPS), and the Nigeria Labour Regulation Commission (NLRC) strongly oppose the draft legislation, while some government officials and policy advocates insist the bill remains critical to reforming social security administration in Nigeria.
The tension surfaced at a public hearing convened to review the new NSITF Amendment Bill, which seeks to restructure the agency, expand its mandate, and alter contribution formulae for workers and employers.
The Nigeria Labour Congress (NLC) rejected the amendment in its entirety, arguing that the bill strips workers of protections and strengthens government control at their expense.
NLC President Joe Ajearo said any labor law enacted without full tripartite engagement “loses its legitimacy,” noting that comprehensive reviews involving labour, government, and employers have been stalled for years.
Ajearo 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 criticized 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 percent—and urged stronger enforcement, especially in the informal sector.
The NLC’s demands centred on preserving true tripartite governance by ensuring no interest group dominates the NSITF, strengthening workers’ representation on the board, establishing an independent investment committee to protect contributors’ funds, and enhancing board autonomy while improving the efficiency and transparency of claims processing.
The Organized zprivate Sector (OPS) also kicked against the bill, stating that increasing employer contributions or expanding NSITF’s mandate would impose heavy financial burdens on already struggling companies.
Representing the Organized Private Sector, Thompson Akpabio raised strong objections to the Nigeria Social Security Trust Fund Bill, 2025, warning that key sections—including 102 and 144—undermine the tripartite structure required under ILO Convention 144. He faulted Section 8 for making the Managing Director the chief executive of the Board, calling it a conflict between governance and management. Akpabio argued the Bill should focus strictly on employee compensation, not broadened social security, and flagged Section 48’s enforcement powers as excessively punitive. He also criticized Sections 71 and 172 for granting the Board authority that could override ministerial oversight and sideline the National Industrial Court. He cautioned that unchecked powers, such as sealing premises without court orders, could disrupt business operations. Akpabio urged lawmakers to realign the Bill with global standards and step it down for further review to protect both employers and workers.
NLRC: “Legal Ambiguities Will Create Institutional Conflict”
The Nigeria Law Reform Commission faulted the amendment for what it described as “dangerous overlaps” that could set NSITF against other regulatory institutions.
Honorable Commissioner of the Nigeria Law Reform Commission, Professor Larry Chukwu, called the draft bill fundamentally flawed, arguing that it fails to provide true social security for all vulnerable Nigerians. He stressed the need for a fresh, comprehensive social security law covering the elderly, children, and disabled, and criticized the bill’s broad investment discretion without statutory safeguards.
Chukwu emphasized maintaining board autonomy and tripartite governance, warning that ministerial overreach could jeopardize workers’ contributions.
He observed that the draft does not clearly define regulatory boundaries and may undermine labour dispute mechanisms and social insurance oversight.
Minister of Labour and Employment, Muhammed Msigarin Dingyadi, commended the Bill’s intent but 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 labor unions.
An invited policy analyst described the draft as “a missed opportunity,” insisting that Nigeria needs a comprehensive social security law, not a narrow amendment focusing only on employment-related insurance.
He stated that the bill fails to address pension gaps, unemployment insurance, disability coverage, and other global best practices.
Government representatives defended the bill, saying the amendment aims to modernize the NSITF after years of operational weaknesses and corruption scandals.
The ministry argued that the changes would improve accountability, streamline governance, and give the Fund stronger enforcement powers.
NSITF Managing Director Oluwaseun Faleye called for clarity in the law, highlighting the need to distinguish between Board oversight and management administration.
He welcomed provisions for electronic claims submission and the inclusion of the informal sector, stressing that employee compensation is a critical component of social security.
Faleye urged continued collaboration among all stakeholders to ensure the fund remains sustainable, transparent, and globally aligned
He also spoke in favour of the amendment, describing it as essential to bridge compliance gaps and expand the Fund’s ability to support injured or disabled workers.
He emphasized that the proposed adjustments would allow the agency to build a more sustainable and responsive social insurance system.
Senator Cyril Fassuyi, Chairman of the Senate Committee on Establishment and sponsor of the Bill, emphasized that the legislation seeks to harmonize the NSITF Act and Employees’ Compensation Act into a single, efficient framework, clarify rules, enhance governance, and improve fund collection.
“The purpose is not to create a new institution, but to ensure fairness, inclusivity, and efficiency for workers and the informal sector alike,” he said. Fassuyi encouraged stakeholders to submit written opinions to inform the National Assembly’s final deliberations, stressing that the public hearing is an opportunity for all voices to be heard.
The hearing highlighted diverging perspectives on governance, ministerial oversight, and the scope of social security coverage, signaling a growing debate on worker rights, accountability, and the future of Nigeria’s social protection system. Stakeholders emphasized the need for tripartite collaboration, transparency, and international alignment to ensure a robust social security system that safeguards both workers’ contributions and national economic development.
Some academics present at the hearing maintained that an updated legal framework is long overdue.
They argued that new realities—automation, contract work, gig economy expansion—require broader insurance coverage, and the NSITF should be empowered to meet contemporary needs.
Following hours of heated deliberations, the National Assembly committee overseeing the hearing led by Senator Diket Plang pledged to review all submissions carefully.
Lawmakers affirmed that another round of stakeholder engagements may be necessary before the bill is finalized.
For now, the divide remains sharp, with labour unions and private sector groups insisting the amendment be withdrawn and replaced with a full-scale social security law, while government and NSITF stakeholders maintain that reform must proceed without delay.
