The Nigeria Social Insurance Trust Fund (NSITF) has issued a clarification, emphasizing that it did not reject the 40% deduction of employer contributions by the Ministry of Finance, as reported in the media.
In a statement released by Nwachukwu Godson, the General Manager, Corporate Affairs, NSITF, the fund clarified that it does not possess the authority to reject the deduction, contrary to media reports. Godson highlighted that the NSITF had earlier made an appeal to the former Minister of Labour and Employment, Simon Lalong, on October 3, 2023, requesting a review of the inclusion of NSITF in the Fiscal Responsibility and Finance Act of 2020. The appeal was based on the fund’s special status as a non-treasury funded agency entrusted with contributors’ money.
The statement quoted part of the Managing Director’s New Year Day release, stating, “The NSITF stands at the threshold of social and economic change, and poised to overcome its challenges as the custodian of social security.” It further highlighted the challenges faced by NSITF, including the deduction of 40% (N1.4 billion) from employer contributions in 2022 by the Ministry of Finance, in compliance with the Fiscal Responsibility and Finance Act of 2020.
Despite being labeled as an operating surplus, NSITF emphasized its unique position as a tripartite agency holding funds in trust for the benefits of employees under the Employee Compensation Scheme (ECS). NSITF clarified that it is not a revenue-generating agency, lacks an operating surplus, and is not treasury-funded, urging a review and removal from the schedule of the Fiscal Responsibility Act.