FG, NSITF, Others Back Social Security Bill As Senate Assures Stakeholders of an Acceptable Law

By Iyojo Ameh

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

At a public hearing organized by the Senate Committee on Employment, Labour and Productivity, the Senate assured stakeholders that their inputs would guide the passage of a law that is widely acceptable.

Sponsored by Senator Cyril Fasuyi (Ekiti North), the bill seeks to expand the mandate of the NSITF into broader social security functions through the harmonization of the NSITF Act of 1993 and the Employees’ Compensation Act 2010—ultimately transforming the agency into the Nigeria Social Security Trust Fund (NSSTF).

Presenting at the hearing, the Managing Director and Chief Executive Officer of NSITF, Mr. Oluwaseun Faleye, praised the Senate for what he described as a “strategic and forward-thinking legislative intervention.”

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

He highlighted the repeal of both the NSITF Act of 1993 and the ECA 2010 as one of the most critical components of the Bill, noting that the co-existence of the two laws had created operational ambiguities—especially after the Pension Reform Act (PRA) 2014 reassigned contributory pension functions from the NSITF to the National Pension Commission.

Faleye stressed that consolidating both laws into a unified statute was timely and necessary, as it eliminates duplication, resolves inconsistencies, and strengthens the Fund’s legal framework.

He added that the Bill’s extension of social security coverage to informal sector workers and the self-employed marks a historic advancement toward inclusive protection for all Nigerian workers.

However, despite supporting the Bill, the NSITF raised concerns over what it termed the “misapplication” of the word “Board” throughout the document. Faleye cautioned that using the term to describe governance, oversight, and day-to-day administration could cause confusion and undermine accountability.

He emphasized the need for clear distinctions between the Governing Board as an oversight body, Management as administrators, and the Agency as the implementing institution, recommending definitions similar to those in the Federal Inland Revenue Service (FIRS) Act, where the Board’s role is separate from that of the Executive Chairman, who serves as the Chief Executive and Accounting Officer.

Faleye concluded by reaffirming NSITF’s full support for the Bill, describing it as “progressive, timely, and in alignment with global best practices.”

In his remarks, the Minister of Labour and Employment, Alhaji Muhammadu Maigari Dingyadi, described the Senate’s initiative as a commendable step. He urged the committee to ensure a balanced outcome that protects the interests of all stakeholders, particularly concerning the powers of management and the board.

Although the Nigeria Labour Congress (NLC) and the Nigerian Employers Consultative Association (NECA) initially opposed the Bill, the NLC—led by its National President, Joe Ajaero—later softened its stance. Ajaero noted: “We are not here for ‘we no go gree, we no gree.’ Since many other critical stakeholders have supported the bill, the NLC is not hell-bent on opposing it. However, the grey areas we raised during our presentation should be addressed by the committee.”

After extensive deliberations, the Committee Chairman, Senator Diket Plang (Plateau Central), assured Nigerians that a widely acceptable social security trust fund law would soon emerge.