Strong disagreements erupted in Abuja yesterday as labour unions, private sector leaders, and legal experts took turns condemning the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act, warning that the draft law threatens workers’ rights, global labour standards, and institutional stability. Government representatives, however, defended the bill as a crucial step in rebuilding Nigeria’s troubled social security framework
At the well-attended public hearing, the Nigeria Labour Congress (NLC) rejected the bill outright, accusing lawmakers of attempting to weaken tripartite governance and hand excessive control to government appointees. NLC President, Joe Ajearo, said any labour legislation enacted without full engagement of labour, employers, and government “loses its legitimacy,” warning that placing the Managing Director under ministerial control would erode board autonomy and undermine workers’ protections.
The Organised Private Sector (OPS) echoed the objections, insisting that the proposed structure violates ILO Convention 144 and risks international backlash. OPS representative, Thompson Akpabio, faulted several clauses—including sections 8, 48, 71, 102, 144, and 172—which he said blur governance lines, grant punitive enforcement powers, and sideline the National Industrial Court. He advised the National Assembly to step down the bill and realign it with global best practices.
The Nigeria Law Reform Commission (NLRC) also opposed the bill, warning of regulatory conflicts and conceptual inconsistencies. Commissioner Professor Larry Chukwu described the draft as “fundamentally flawed,” arguing that Nigeria needs a comprehensive social security law covering the elderly, unemployed, disabled, and children—not a narrow amendment focused on workplace compensation. He pointed to unchecked investment discretion and potential ministerial overreach as major risks to contributors’ funds.
However, government officials maintained that the amendment is overdue. Labour Minister, Muhammed Msigarin Dingyadi, emphasised the necessity of transparency, improved compliance, and wider coverage for informal sector workers. NSITF Managing Director, Oluwaseun Faleye, backed the bill, saying harmonizing laws will strengthen claims processing, modernize operations, and expand worker protections.
The bill sponsor, Senator Cyril Fassuyi, said the intention is not to create a new institution but to harmonise the existing NSITF Act and Employees’ Compensation Act, enhance governance, and build a more efficient system. He urged stakeholders to submit written memoranda for final deliberations.
The hearing highlighted deep divisions over governance, enforcement powers, and the true scope of social security in Nigeria. While labour and private sector groups insist the amendment be withdrawn and replaced with a full-scale social security law, government officials argue that reform is urgent and unavoidable.
The Senate committee, chaired by Senator Diket Plang, pledged to review all submissions and consider further consultations before presenting a final report.