The Nigeria Social Insurance Trust Fund (NSITF) has supported the proposed Nigeria Social Security Trust Fund Bill, 2025, saying it’s a landmark reform that will strengthen the country’s social protection architecture and resolve operational contradictions.
Its Managing Director, Mr. Oluwaseun Faleye, mentioned this in a memorandum presented to the Senate Committee on Labour and Employment during its public hearing on the Bill at the National Assembly on Monday.
He lauded the Senate for a strategic and forward-looking legislative intervention, noting that the new bill 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).
According to him, the proposed legislation would help reposition the NSITF after years of structural constraints arising from overlaps between the existing NSITF Act and the Employees’ Compensation Act (ECA) 2010.
One of the most significant elements of the Bill, according to the NSITF boss, 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 the National Pension Commission, he said.
“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,” Faleye added.
He also commended the proposed change of name to the Nigeria Social Security Trust Fund, dropping the term “Insurance,” which he said had hindered acceptance of the Employees’ Compensation Scheme in some cultural environments.
The Bill’s expansion of social security coverage to include informal sector workers and self-employed persons was also described as “a historic step” towards inclusive protection for all categories of working Nigerians.
Other provisions commended by the Fund include electronic submission of claims to reduce delays, recognition of multiple spouses and dependants in line with local customs, creation of trust accounts for minors, and the inclusion of trado-medical practitioners in the treatment process for injured workers.
Faleye further praised provisions allowing the Board to periodically update occupational disease schedules, enforce stricter workplace safety standards, impose penalties for failure to report workplace accidents, and invest in real estate as a new asset class. The Bill’s protection of the Fund from any form of external deductions was also hailed as a safeguard against the diversion of social security resources.
But 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 reaffirmed NSITF’s full support for the passage of the Bill, describing it as “progressive, timely, and aligned with global best practices.”
He assured the Senate Committee that the Fund remains ready to provide any technical assistance required as lawmakers finalise work on the legislation.
“The proposed Act strengthens the foundation of social protection in Nigeria and enhances the welfare, safety and dignity of Nigerian workers,” he said.
