In a significant development, Nigeria's organised labour and a key employers' group have united to oppose planned changes to a major social security law. The proposed amendments to the Nigeria Social Insurance Trust Fund (NSITF) Act faced strong rejection during a Senate public hearing held on Tuesday, December 2, 2025.
A Unified Front Against the Bill
The Nigeria Labour Congress (NLC), led by its President, Joe Ajaero, stood alongside the Nigeria Employers’ Consultative Association (NECA) to voice their firm disapproval. They described the draft legislation as flawed and out of step with global norms. Both bodies demanded the immediate withdrawal of the bill. They argued that any legitimate reform must begin with a proper tripartite consultation process involving government, employers, and workers, a standard practice endorsed by the International Labour Organisation (ILO).
The opposition extends beyond labour and employers. The Organised Private Sector (OPS) and the Nigeria Labour Regulation Commission (NLRC) have also raised objections. However, some government officials and policy advocates maintain that the amendments are crucial for modernising Nigeria's social security administration.
Core Objections and Warnings
Speaking at the hearing, Joe Ajaero delivered a powerful critique. He stated that any labour law created without full tripartite engagement "loses its legitimacy." He highlighted that comprehensive reviews involving all key stakeholders have been stalled for years. Ajaero emphasised a fundamental principle: the NSITF is financed by employers for the benefit of workers, not the government.
He identified specific proposals as particularly problematic. Plans that would allow the government or employers to dominate the NSITF board were labelled "an affront to tripartism and a betrayal of workers’ rights." He also criticised attempts to place the fund's managing director under direct ministerial control, insisting that the board's autonomy is non-negotiable for credible governance.
Ajaero further pointed to a systemic issue: compliance with existing labour laws in Nigeria is below 30 per cent. He urged stronger enforcement mechanisms, especially to cover workers in the vast informal sector.
NECA and Government's Stance
Echoing these concerns, the Director-General of NECA, Adewale-Smatt Oyerinde, reiterated the association's deep worries about the bill's content and intent. "Our position remains that the foundation of this amendment is inconsistent with global best practice as enshrined in several ILO Conventions and Recommendations," he stated.
Both organisations warned that the proposed changes would not strengthen the NSITF as intended. Instead, they could expose the fund to severe legal, administrative, and financial risks, ultimately undermining its long-term sustainability and credibility.
On the other side, the Minister of Labour and Employment, Muhammed Msigarin Dingyadi, commended the bill's objectives. He stressed the need for transparent administration, better employer compliance, and the inclusion of informal sector workers. The Minister noted that the success of any social security reform in Nigeria depends on collaboration among government agencies, employers, and labour unions.
The public hearing has set the stage for a major policy debate. The rejection by both labour and employers creates a significant hurdle for the amendment bill. The call for a proper tripartite process now stands as the central demand for moving forward with any reform of the NSITF Act.
