The Senate, through its Committee on Employment, Labour and Productivity has assured stakeholders of the law on the Nigeria Social Security Trust Fund, NSSTF, meant to enhance effective service delivery very soon.
Chairman of the committee, Senator Diket Plang, PDP Plateau Central, gave the assurance on Monday at a public hearing organised for the stakeholders’ inputs into the proposed legislation, NSSTF, which seeks to harmonize the existing Nigeria Social Insurance Trust Fund, NSITF, Act and the Employees’ Compensation Act, ECA 2010.
The bill, sponsored by Senator Cyril Fasuyi (APC Ekiti North), primarily seeks to expand the scope of NSITF into social security through harmonization of NSITF Act of 1993 and the Employees Compensation Act, 2010 which will transformed NSITF to Nigeria Social Security Trust Fund, NSSTF.
Speaking on behalf of the federal government, the Minister of Labour and Employment, Muhammadu Maigari Dingyadi described the move by the Senate on the proposed law as a very beautiful idea .
He, however, urged the Senate to arrive at a safe and acceptable position for all stakeholders by striking the required balance between powers of management team and that of the board.
In his presentation at the public hearing, the Managing Director and Chief Executive Officer of NSITF, Mr Oluwaseun Faleye, commended the Senate for what he termed a “strategic and forward-looking legislative intervention.
The new bill according to him, marks a decisive step towards modernising Nigeria’s social security framework in line with global standards, especially the International Labour Organisation, ILO Social Security (Minimum Standards) Convention, 1952 (No. 102), and the Tripartite Consultation Convention, 1976 (No. 144).
One of the most significant elements of the Bill, according to him, is the repeal of both the NSITF Act of 1993 and the ECA 2010.
Their co-existence, he explained, had resulted in operational ambiguities, particularly after the Pension Reform Act (PRA) 2014 transferred contributory pension functions from NSITF to National Pension Commission.
“The consolidation of the two Acts into a single, coherent statute is timely, necessary, and commendable. It eliminates duplication, resolves conflicts, and strengthens the legal framework of the Fund.
“The bill’s expansion of social security coverage to include informal sector workers and self-employed persons is a historic step towards inclusive protection for all categories of working Nigerians,” he said.
Despite its broad support for the bill, the NSITF raised concerns about what it described as the “misapplication” of the term Board throughout the document.
Faleye warned that using the word to refer simultaneously to governance, oversight, and day-to-day administrative functions could create confusion and weaken accountability.
“The board meets quarterly, while daily operations are under the Managing Director. The bill must distinguish clearly between the Governing Board as oversight body, management as administrators, and the agency as the implementing institution,” he said.
He recommended that the bill adopt clearer definitions similar to those used in the Federal Inland Revenue Service, FIRS Act, where the Board’s role is separated from that of the Executive Chairman, who functions as the Chief Executive and Accounting Officer.
Faleye concluded by reaffirming NSITF’s full support for the passage of the Bill, describing it as “progressive, timely, and aligned with global best practices.”
Though the Nigeria Labour Congress, NLC and the Nigerian Employers Consultative Association, NECA, kicked against the bill, the NLC led by its National President, Joe Ajaero, later succumbed, saying “we are not here for we no go gree, we no gree.”
“Since many of the other critical stakeholders have supported the bill, NLC is not hellbent in opposing it. But the grey areas we identified during presentation, should be addressed by the committee,” he added.