The Nigeria Labour Congress (NLC), Trade Union Congress and the Nigerian Employers Consultative Association (NECA) are threatening to withdraw their members? contributions to the Nigeria Social Insurance Trust Fund (NSITF) and the National Pension Commission (PENCOM) if their boards are not inaugurated by the Federal Government.

President of NLC, Joe Ajaero and his TUC counterpart, Festus Osifo have been lamenting the inauguration delay. Ajaero and Osifo argued that PENCOM and NSITF are products of labour struggle for better conditions of service for members.

On his part, Osifo said the managements of both organisations may have been spending money illegally. Now, NECA has added its voice to the agitation.

NECA?s Director-General, Adewale-Smatt Oyerinde, stated that the presence of boards will ensure effective governance, transparency, and accountability in managing employer?s contributions and workers? pension funds.

Oyerinde expressed concern over the prolonged delay in constituting the boards, emphasising that the absence of proper governance structures creates significant accountability concerns and uncertainty in the fund administration.

He explained: ?The NSITF Act of 1993 mandates the establishment of a Board to provide oversight and policy direction in the administration of social insurance contributions. Similarly, the Pension Reform Act (PRA) 2014 requires the PENCOM Board to safeguard the integrity of the pension industry. Without these Boards, there is a glaring governance gap that weakens regulatory oversight and exposes the NSITF and the Pension funds to intended and unintended risks.?

The NECA scribe also noted that the contributions to NSITF and PenCom are not government income but money that is contributed by employers and workers meant for specific purposes.

His words: ?Employers, and indeed workers, who make mandatory contributions to these schemes are becoming increasingly concerned about the absence of governance structures to ensure judicious fund management. Moreover, this deviation from international best practices contradicts the principles of good governance upheld by global organizations such as the International Labour Organization (ILO), which stress the importance of effective governance in social security and pension management.?

Oyerinde warned that the continued failure to constitute the boards contravenes statutory provisions, erodes public trust, and could compel employers to stop their contributions due to concerns over fund transparency and mismanagement.

He further stressed that maintaining employer confidence in the institutions is crucial to ensuring the financial security of Nigerian workers and retirees.

Reiterating NECA?s stance, Oyerinde urged the Federal Government to act swiftly in constituting the boards in line with legal requirements, adding that the business community remains committed to fulfilling its statutory obligations but expects the government to uphold principles of good governance and global best practices. (The Guardian)

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