FG, NSITF, Others Back Social Security Bill

The Federal Government and the Nigeria Social Insurance Trust Fund (NSITF) on Monday declared support for the proposed Social Security Trust Fund Bill, which aims to harmonize the existing NSITF Act and the Employees’ Compensation Act (ECA) 2010 for enhanced service delivery.

At a public hearing convened for stakeholder input, the Senate Committee on Employment, Labour and Productivity assured participants that the final legislation would be acceptable to all parties.

Sponsored by Senator Cyril Fasuyi (Ekiti North), the bill seeks to broaden the mandate of the NSITF by merging the NSITF Act of 1993 with the Employees’ Compensation Act of 2010, effectively transforming the agency into the Nigeria Social Security Trust Fund (NSSTF).

Speaking during the session, NSITF Managing Director and Chief Executive Officer, Mr. Oluwaseun Faleye, commended the Senate for what he described as a “strategic and forward-looking legislative intervention.”

According to him, the proposed law represents a significant step toward modernizing Nigeria’s social security architecture in line with global benchmarks, including the International Labour Organisation (ILO) Social Security (Minimum Standards) Convention, 1952 (No. 102), and the Tripartite Consultation Convention, 1976 (No. 144).

Faleye noted that a key feature of the bill is the repeal of both the NSITF Act of 1993 and the ECA 2010, whose dual existence, he said, had created operational conflicts—particularly after the Pension Reform Act (PRA) 2014 transferred contributory pension responsibilities from NSITF to the National Pension Commission.

He explained that consolidating the two laws into a single statute is “timely, necessary, and commendable,” as it eliminates overlap, resolves inconsistencies, and strengthens the legal framework of the Fund.

Faleye also highlighted the expansion of social security coverage to the informal sector and self-employed workers as a groundbreaking move that would ensure inclusive protection for all categories of Nigerian workers.

Despite supporting the bill, the NSITF boss raised concerns over the “misapplication” of the term “Board” throughout the draft law, warning that using it to refer to governance, oversight, and daily administration could create confusion and weaken accountability.

He stressed that the Board meets quarterly, while daily operations fall under the Managing Director, and urged lawmakers to clearly distinguish the Governing Board from Management and the Agency. He recommended the clearer model employed in the Federal Inland Revenue Service (FIRS) Act, where the Board’s role is distinct from that of the Executive Chairman, who serves as Chief Executive and Accounting Officer.

Faleye reaffirmed NSITF’s full support for the bill, describing it as “progressive, timely, and aligned with global best practices.”

In his remarks, the Minister of Labour and Employment, Alhaji Muhammadu Maigari Dingyadi, applauded the Senate’s initiative, describing it as a very commendable idea. He urged the committee to ensure an outcome acceptable to all stakeholders by balancing the powers of the management team and the board.

Although the Nigeria Labour Congress (NLC) and the Nigerian Employers Consultative Association (NECA) initially opposed the bill, NLC President Joe Ajaero later softened the union’s stance, saying: “We are not here for ‘we no go gree, we no go gree’… Since many other critical stakeholders have supported the bill, NLC is not hellbent on opposing it. But the grey areas we identified should be addressed by the committee.”

After extensive deliberations, the Committee Chairman, Senator Diket Plang (Plateau Central), assured Nigerians that an acceptable law on the social security trust fund would soon be produced.

James Itodo, Edited By Grace Namiji