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Clarifies concern issues raised by Congress’ CWC
THE Nigeria Social Insurance Trust Fund (NSITF) has formally tendered an apology to the Nigeria Labour Congress (NLC) over a controversial publication concerning the ownership title of the Congress national headquarters in Abuja. The Fund also used the opportunity to clarify issues raised by the Central Working Committee (CWC) of the Congress on its operations, particularly regarding the Employees Compensation Scheme (ECS).
In a letter addressed to the NLC leadership, the Managing Director and Chief Executive of the Fund, Dr. Oluwaseun M. Faleye, acknowledged receipt of the Congress letters dated July 22, 2025, and August 13, 2025, and assured that the Fund remains committed to protecting Nigerian workers. We sincerely appreciate your keen interest in safeguarding the Employees Compensation Scheme, which remains a critical pillar in the protection of Nigerian workers, the NSITF boss stated.
Dr. Faleye explained that the controversy surrounding deductions from the Fund’s accounts stemmed from a 2023 circular of the Federal Ministry of Finance, which introduced a policy of automatic deduction of 50 percent from the internally generated revenue of all Federal Government-owned enterprises. The Fund has consistently engaged formally with the Federal Ministry of Finance, the Budget Office of the Federation, the Office of the Accountant General of the Federation and the Fiscal Responsibility Commission that the said circular overlooks the peculiarities of the Employees Compensation Act 2010, which forms the basis of the core mandate of the Nigeria Social Insurance Trust Fund, he said.
He stressed that the Fund is not a revenue-generating agency and that monies received as contributions under the Employees Compensation Scheme cannot be treated as revenues. Indeed, within the context of our mandate and obligations to subscribers under the law, those collections are to be treated as liabilities rather than revenues, Faleye emphasised.
According to him, engagements with relevant economic managers had yielded results. Following extensive engagements with key stakeholders, the Office of the Accountant General of the Federation by its letter of March 25, 2024, upheld our argument and noted that it will exclude employers contributions from the automatic deductions. Some of the deductions made have been reversed, with reconciliation still ongoing, he explained.
He, however, noted that deductions were still being made from proceeds of investments, but expressed confidence that further engagements with the Ministry of Finance and Budget Office would permanently resolve the matter. The Director General of the Budget Office, at our last meeting on Monday 11th August, reaffirmed this understanding and gave his commitment to ensuring that no further deductions are made from our funds under any guise. The Honourable Minister of Finance and Coordinating Minister of the Economy has also expressed similar views on the matter, he added.
Responding to allegations that the Fund was plotting amendments to the NSITF and Employees Compensation Acts to weaken workers’ rights, Faleye dismissed the claims. We are not actively pursuing the amendment of the NSITF and ECA Acts to undermine workers’ rights and control over their contribution as alleged. Instead, we have actively engaged the National Assembly on issues that will enhance the sustainability of the Fund to better serve Nigerian workers, he clarified.
He explained that the Fund’s engagement with lawmakers through its annual retreats with stakeholders was aimed at strengthening compliance with the Employees Compensation Scheme. One of those recommendations, amongst others, is the need to give the NSITF more powers to enforce compliance with the ECA on defaulting employers, a recommendation which in our view will better enhance and protect workers’ rights rather than undermine them, he said.
On the matter of the Congress headquarters, the NSITF boss was unequivocal. Lastly is to retract our recent publication in respect of the title document relating to the NLC National Headquarters in the light of new and superior information and to apologise to the Congress and its leadership for any embarrassment the said publication may have caused. I shall be liaising with the Congress in the coming days to regularize any matter that may remain outstanding on this matter, he assured.
He concluded by reaffirming the Fund’s commitment to partnership with labour. We value our partnership with the Nigeria Labour Congress and remain committed to working together to protect the interests of Nigerian workers, Faleye wrote.
The letter was also copied to the Honourable Minister of Labour and Employment, Minister of Finance and Coordinating Minister of the Economy, the Director General of the Budget Office of the Federation, and the Accountant General of the Federation. (TRIBUNE)
