NLC, OPS, Reject NSITF Amendment Bill

… It’s Fundamentally Flawed – NLRC

… Labour Ministry, NSITF, Others Back Bill

A public hearing on a bill to amend the Nigeria Social Insurance Trust Fund (NSITF) Act on Monday witnessed a mild storm as some key stakeholders voiced their rejection of the bill.

Specifically, the Nigeria Labour Congress (NLC), the Organised Private Sector (OPS), and the Nigerian Law Reform Commission (NLRC) called for outright withdrawal of the Bill.

The Bill, which seeks to repeal the NSITF and Employees’ Compensation Acts, plans to establish the Nigeria Social Security Trust Fund (NSSTF) in its place.

A major thrust of the bill, which has already passed the second reading in the Senate, is to merge existing laws into a single, efficient framework to create a central institution for social security.

It also aims to expand workers’ protection to both formal and informal sectors, with a view to ensuring accountability.

But the NLC, OPS and the NLRC expressed concerns that the proposed amendment could lead to excessive government control capable of weakening the Fund’s governance and undermining other stakeholders who are major contributors to the Fund.

Represented by its president, Joe Ajaero, the NLC described the bill as a “brazen and unpatriotic act of class warfare” and a “grave assault on the principles of tripartism.”

According to him, the bill, if passed, would dismantle the tripartite governance structure of the current NSITF Act, reducing workers’ representation and handing control to political appointees.

Ajaero vowed stiff resistance to the amendment, warning that the NLC would mobilise Nigerian workers and affiliates to resist the move by halting deductions and remittances to the NSITF.

“The bill is a grave assault on the principles of tripartism and a blatant attempt to undermine workers’ rights,” Ajaero said.

He added that the bill violates the International Labour Organisation (ILO) Conventions, citing ILO Convention 144 on Tripartite Consultation.

The Labour leader declared that the NLC would not support any attempt to undermine workers’ rights and would take all necessary steps to protect the interests of Nigerian workers.

Also, the OPS, which was represented at the hearing by a representative of the Nigerian Employers Consultative Association (NECA), aligned with the NLC.

NECA, which was presented by Mr Thompson Akpabio, described the bill as “fundamentally flawed” and called for its immediate withdrawal.

He faulted the bill on the ground that it seeks arbitrary control by government appointees, despite the OPS being the biggest contributors to the FUND.

Akpabio argued that the governance structure proposed by the bill could eventually kill the Fund, asking that the NSITF should rather be transformed into a special security.

“Section 72 of the bill robs the minister of his powers over the Fund. The Governing Board is being positioned to erode the powers of the Minister.

“Also, Section 70(e), which seeks to empower the NSITF to seal the business premises of defaulting employers, with or without court orders, is a recipe for national industrial crisis. We call on this committee to stand down this bill,” Akpabio said.

Similarly, the NLRC, which was represented by one of its commissioners, Prof Larry Chukwu, faulted the entire amendment process, saying that the Law Reform Commission was not duly informed ahead of time, as required by law.

“You cannot hold a public hearing to amend laws in Nigeria without involving the NLRC. We are neither pro-government nor anti-government. Our job is to ensure that laws align with the interests of the Nigerian people,” Chukwu declared.

Speaking further, he observed that, going by its title, the bill did not make any provision for social security, regretting that Nigeria does not have a workable social security system in place.

“Social security is all about taking care of very low-income earners, the unemployed, the aged, physically challenged and vulnerable members of society,” he added.

The NLRC Commissioner demanded a separate bill for social security for Nigerians that can be enforced in the court of law, stressing that the proposed amendment bill under review should be discarded.

On the other hand, the NSITF, represented by its Managing Director, Oluwaseun Faleye, welcomed the amendment, saying that it retains the power invested in the Fund.

Faleye clarified that the government at the federal, state and local levels also contributes to the Fund, contrary to the claims of the OPS that only the private sector feeds the Fund.

The NSITF boss, however, urged broader consultation with more stakeholders, with a view to accommodating further input, instead of throwing out the bill.

Also, the Minister of Labour and Employment, Dr Mohammed Dingyadi, noted the concerns raised by the stakeholders and called for expanded consultation.

The Minister cautioned against what he described as “excessive enlargement” of the size of the Governing Board, considering the cost implications.

Dingyadi also observed what he called a move to subordinate the powers of the Board and the Management, calling for balance to ensure accountability.

The minister urged the Senate and other stakeholders to work out a common position and come up with an amendment that would be fair to all parties and beneficial to all concerned.

The Senate Committee on Employment, Labour and Productivity, which organised the hearing, promised to seek further input from diverse stakeholders with a view to enriching the final act.

The chairman of the committee, Senator Diket Plang, thanked the various contributors, assuring that the committee would study the various presentations and come up with legislation that would serve the interests of all stakeholders.