The Nigeria Social Insurance Trust Fund (NSITF) has apologised to the Nigeria Labour Congress (NLC) over a controversial publication regarding the ownership of the Congress’ national headquarters in Abuja. The Fund also moved to address concerns raised by the Congress’ Central Working Committee (CWC) on its operations, particularly around the Employees Compensation Scheme (ECS).
In a letter to the NLC leadership, the NSITF Managing Director and Chief Executive, Dr. Oluwaseun M. Faleye, acknowledged receipt of Congress’ letters dated July 22 and August 13, 2025, and assured that the Fund remains committed to its core mandate of protecting Nigerian workers.
“We sincerely appreciate your keen interest in safeguarding the Employees Compensation Scheme, which remains a critical pillar in the protection of Nigerian workers,” Dr. Faleye stated.
Clarifying Revenue Deductions
Dr. Faleye explained that the controversy over deductions from the Fund’s accounts arose from a 2023 circular by the Federal Ministry of Finance, which mandated the automatic deduction of 50 percent from the internally generated revenue of federal government-owned enterprises.
He stressed, however, that the NSITF is not a revenue-generating agency, and that employer contributions under the ECS cannot be classified as revenue.
“Those collections are to be treated as liabilities rather than revenues, within the context of our obligations to subscribers under the law,” he said.
Following sustained engagements with the Ministry of Finance, the Budget Office, the Office of the Accountant General, and the Fiscal Responsibility Commission, the Accountant General’s Office, in a letter dated March 25, 2024, upheld the NSITF’s position and confirmed that employer contributions would be excluded from such deductions. Some of the earlier deductions have already been reversed, with reconciliation still ongoing, he added.
While deductions were still being made from investment proceeds, Faleye expressed optimism that ongoing discussions with the Ministry of Finance and Budget Office would lead to a permanent resolution.
On Alleged Moves to Amend Labour Laws
Responding to accusations that the Fund was seeking amendments to the NSITF Act and the Employees Compensation Act (ECA) to weaken workers’ rights, Faleye dismissed the claims as unfounded.
“We are not actively pursuing any amendment to undermine workers’ rights or control over their contributions,” he clarified.
Instead, he noted that the Fund has engaged the National Assembly through stakeholder retreats, pushing for measures that would strengthen compliance with the ECS, including proposals to grant NSITF greater enforcement powers against defaulting employers.
Retraction on NLC Headquarters Publication
On the controversy surrounding the NLC headquarters, Faleye was unequivocal in retracting the Fund’s earlier publication.
“We retract our recent publication regarding the title document of the NLC National Headquarters in light of new and superior information, and we apologise to the Congress and its leadership for any embarrassment the publication may have caused,” he said.
He pledged to work with Congress in the coming days to resolve any outstanding issues.
Reaffirming Partnership with Labour
Dr. Faleye concluded by restating the NSITF’s commitment to collaboration with the labour movement.
“We value our partnership with the Nigeria Labour Congress and remain committed to working together to protect the interests of Nigerian workers.”
The letter was copied to the Minister of Labour and Employment, the Minister of Finance and Coordinating Minister of the Economy, the Director General of the Budget Office, and the Accountant General of the Federation.
