The Nigeria Labour Congress (NLC) has rejected the proposed amendment to the Nigeria Social Insurance Trust Fund (NSITF) Act and has called for an emergency meeting to strategise on its next steps. The announcement was made on Wednesday through a notice signed by the union’s spokesperson, Benson Upah.
The sole purpose of the emergency meeting is to deliberate on the proposed NSITF Bill, which recently passed its second reading in the Senate. The bill seeks to repeal the existing NSITF Act and replace it with a new law known as the Nigeria Social Security Trust Fund Act 2025. It is sponsored by Senator Fasuyi Cyril of the All Progressives Congress (APC), representing Ekiti State in the 10th National Assembly.
However, the NLC says the bill is unacceptable, warning that it could undermine the purpose of the NSITF and harm Nigerian workers. “We are strongly opposed to the bill. It is ill-motivated, ill-advised and will spell doom for the letter and spirit of what NSITF ought to be,” Upah stated.
The NSITF was established to provide social insurance coverage for workers, including compensation for workplace injuries, disabilities, and death. It also supports employees who lose their jobs and ensures that employers contribute to a system that protects their workforce.
Over the years, the fund has faced several challenges, including allegations of mismanagement, weak oversight, and stalled reforms. Labour unions have consistently demanded transparent management and the protection of workers’ interests.
The NLC believes the newly proposed bill does not address these long-standing problems. Instead, the union argues that the amendment will shift control away from workers and place more power in the hands of the government. Labour leaders fear that such changes could lead to political interference, reduced accountability, and policies that do not favour employees.
NLC officials also say the bill was drafted without proper consultation, which they describe as an attempt to sideline key stakeholders. They argue that any amendment to the NSITF Act should involve input from workers’ unions, employer groups, pension experts, and civil society.
The NLC is not alone in rejecting the proposed changes. Barely two days before the union’s announcement, the Organised Private Sector of Nigeria (OPSN) also raised strong objections to the bill. The OPSN includes major business organisations such as the Nigeria Employers’ Consultative Association (NECA), the Manufacturers Association of Nigeria (MAN), and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
According to the private sector coalition, the proposed amendment would benefit the government at the expense of employees and employers who contribute to the fund. The OPSN said it was concerned that the bill would weaken private sector involvement in managing the fund, reduce transparency, and impose unnecessary financial burdens on businesses.
The group argued that the NSITF should remain a tripartite institution—jointly managed by labour, employers, and government—to guarantee fairness and balance in decision-making. They warned that excluding or reducing the role of employers could erode the trust needed for the system to function properly.
The NSITF has undergone multiple reforms since its establishment in 1961, when it was originally created as the National Provident Fund (NPF). In 1993, it was changed to the current NSITF structure to introduce a wider social insurance scheme. Despite these reforms, the fund has struggled with public perception due to various controversies, including allegations of misappropriated funds and weak governance structures.
In 2010, the Employees’ Compensation Act (ECA) placed the NSITF in charge of managing contributions from employers to cover injuries or workplace accidents. However, many employers complain about unclear guidelines, slow claims processing, and concerns over how contributions are used.
Workers’ unions and employers have long called for a full overhaul of the institution—one that strengthens transparency, improves service delivery, and ensures contributors know how their money is spent. But both groups say the current amendment bill does not address these concerns. Instead, they believe it could worsen existing problems.
The NLC’s decision to convene an emergency meeting underscores the seriousness with which the union views the proposed bill. Such meetings are usually reserved for major national issues affecting workers, including wage negotiations, fuel price increases, or threats to labour rights.
During the meeting, labour leaders are expected to review the contents of the bill and outline strategies to pressure lawmakers to withdraw it or amend it in line with labour’s demands. The congress may also mobilise its affiliates across the country, engage with civil society groups, and communicate its position to lawmakers and the presidency.
The NLC has a history of using protests, legal action, and nationwide strikes to challenge government policies it considers harmful. Workers across various sectors will be watching closely to see whether the congress adopts a confrontational approach or opts for dialogue with the Senate.
The NSITF amendment bill will progress to the Senate Committee on Labour and Employment for further review. After committee work, the bill will return to the full Senate for debate and possible passage. It will then move to the House of Representatives before being sent to the President for assent.
For now, the NLC’s strong opposition signals what may become a major labour-government confrontation in the coming weeks. Workers’ unions insist that any law affecting social insurance must protect employees and preserve the original goals of the NSITF.
