The Federal Government has pledged to reverse deductions from the Employees’ Compensation Scheme managed by the Nigeria Social Insurance Trust Fund (NSITF) in response to the Nigeria Labour Congress (NLC) threatening a nationwide strike.
The NLC accused the government of diverting 40% of NSITF contributions to the treasury, a move they argue undermines workers’ social protection. They demanded a full refund and the reconstitution of the National Pension Commission (PenCom) board, warning that failure to act could lead to industrial action.
NSITF Managing Director Oluwaseun Faleye confirmed that deductions had occurred but stated they were not a diversion of funds. The deductions followed a policy requiring government enterprises to remit half of their internally generated revenue to the treasury, introduced to boost government revenue.
The NLC acknowledged the receipt of NSITF’s letter regarding the deductions but stated they would review it before deciding on the strike. They emphasized that contributions to NSITF should not be treated as government revenue.
In related concerns, the NLC has raised alarms over the non-constitution of PenCom’s board, warning that this could undermine oversight of workers’ retirement savings.
