… NSITF moves to avert strike, says AGF will refund workers, NLC leaders to review letter
The Federal Government has pledged to reverse deductions from the Employees’ Compensation Scheme managed by the Nigeria Social Insurance Trust Fund (NSITF), following threats of a nationwide strike by the Nigeria Labour Congress (NLC).
Last week, the NLC accused the government of diverting 40 percent of NSITF contributions into the treasury.
It demanded an immediate refund and the reconstitution of the National Pension Commission (PenCom) board, warning of industrial action if its demands were ignored.
The Employees’ Compensation Scheme provides financial support to employees who suffer work-related injuries, illnesses, disabilities, or death.
It is funded entirely by employer contributions of about one per cent of monthly payroll, with no deductions from workers’ wages.
In a letter to the NLC dated 16 August 2025, NSITF Managing Director, Oluwaseun Faleye, confirmed that deductions had taken place, but argued they were not diversions.
He said the policy stemmed from a Ministry of Finance directive in December 2023 requiring all government-owned enterprises to remit half of their internally generated revenue.
The move, spearheaded by Finance Minister Wale Edun and strongly backed by President Bola Tinubu, was aimed at boosting revenue and narrowing the fiscal deficit.
Faleye, however, noted that employer contributions, being statutory liabilities and not government revenue, were exempted from March 2024, following an order from the Accountant-General of the Federation.
Some deductions have already been reversed, while others remain under review.
He added that deductions from investment income continue but assured that meetings with the Finance Ministry and the Budget Office in August 2025 secured commitments that no further debits would be made.
The NLC, however, said it will review the correspondence before deciding on strike action.
Assistant General Secretary Christopher Onyeka stressed that NSITF, as a tripartite agency owned by workers, employers, and government, should not be treated as a revenue-generating body.
“The contributions are to compensate workers in the event of injury. They are not government revenue,” he said, warning that tampering with the funds threatened workers’ social protection.
On fears that NSITF was pushing for amendments to the Employees’ Compensation Act to weaken protections, Faleye insisted the agency’s proposals were aimed at enhancing enforcement against defaulting employers.
The NLC also decried the non-constitution of the PenCom board, describing it as unlawful and dangerous to the integrity of workers’ pension savings.
Section 19 of the Pension Reform Act 2014 provides for a 16-member board, including representatives of labour, employers, and pensioners.
But since President Tinubu dissolved parastatal boards in June 2023, PenCom’s has not been fully reconstituted, despite the Senate’s confirmation of its Director-General, Omolola Oloworaran, in November 2024.
The Centre for Pension Rights Advocacy backed the NLC’s demand, though it said direct access to pension reports by the union was not provided for in law.
The Nigeria Employers’ Consultative Association (NECA) also supported calls for PenCom’s board to be reconstituted, warning that the vacuum undermined credibility.
PenCom and NSITF separately assured workers that all contributions and retirement savings remain secure. “Nobody’s money is missing,” PenCom spokesman Ibrahim Buwal said.
Consumer rights advocate, Moses Igbrude, meanwhile urged dialogue over strikes. “Both parties should meet, table issues, and agree before escalation,” he said.
The NLC has recently clashed with the Federal Government over subsidy removal, electricity tariff hikes, and minimum wage. The pension and compensation disputes add to an already strained relationship.
