By National Record, with Agency Report
THE MANAGEMENT Board of the Nigeria Social Insurance Trust Fund (NSITF) has raised a significant concern over the Finance Act 2021, warning that its ambiguous language threatens the NSITF’s financial health and autonomy.
The concerns were articulated by the NSITF Board Chairman, Hon. Sola Olofin, during the 69th meeting of the board held at the Transcorp Hilton Hotel in Abuja.
At the heart of the issue is a critical debate over whether employer contributions to the NSITF should be classified as government revenue, which would fall under the purview of the Federal Inland Revenue Service (FIRS). The Board argues that such a classification fundamentally misrepresents the nature of these funds.
NSITF Board’s alarm is coming on the heels of a stern warning by the Nigeria Labour Congress (NLC) following its Central Working Committee (CWC) meeting on Wednesday, August 13, 2025, when it described the conversion of workers’ contribution to revenue as a flagrant violation of the NSITF Act and an assault on workers’ social protection rights.
The NLC vowed to explore all legitimate means to protect workers’ interests, while demanding the immediate return of the diverted funds within seven working days. “The NSITF belongs to the Nigerian working class, and we will mobilise all legitimate means to protect workers’ interests,” a communiqué issued after the CWC meeting, signed by Comrade Joe Ajaero, NLC President, asserted.
Not Mere Accounting Technicality
According to the NSITF Board Chairman, the ambiguity in the Act is not a mere accounting technicality but a matter with profound implications.
“The Financial Act 2021 has introduced changes with significant implications for NSITF. Of particular note is the conversation around whether contributions made to the Fund should be classified as revenue within the purview of the Federal Inland Revenue Service. This is not merely an accounting classification, it is a matter with far-reaching effects on the autonomy, operations and the financial health of the Fund,” Olofin said.
The Chairman underscored the need for the Board to support the NSITF Management, to strengthen the Fund’s policy stance on the Financial Act 2021 and contributions’ classification.
“As a Board, we have the duty to engage actively on this front, to ensure that our position is clearly articulated on the peculiar nature of NSITF’s contributions. The contributions are statutory and earmarked for specific social security objectives. This must be fully appreciated by policymakers and tax authorities.
“We must continue our advocacy, backed by sound legal and policy arguments to safeguard the Fund from regulatory overreach that may impair its ability to meet its statutory obligations,” Olofin said, adding that the board meeting is not only statutory, but a demonstration of the members’ collective commitment to stewardship.
