The Senate Committee on Employment, Labour and Productivity has reassured stakeholders that legislation establishing the Nigeria Social Security Trust Fund (NSSTF) will soon be enacted. This new law is intended to significantly “enhance effective service delivery” within the nation’s social safety net framework.
The assurance was given by the committee’s Chairman, Senator Diket Plang (PDP, Plateau Central), at a public hearing convened to gather stakeholder input on the proposed NSSTF legislation on Monday, the 1st of December, 2025.
Sponsored by Senator Cyril Fasuyi (APC, Ekiti North), the core purpose of the bill is to expand the current Nigeria Social Insurance Trust Fund (NSITF) into a comprehensive social security scheme. This transformation is to be achieved by harmonization of the NSITF Act of 1993 and the Employees’ Compensation Act (ECA) 2010, effectively turning NSITF into the NSSTF.
The Minister of Labour and Employment, Muhammadu Maigari Dingyadi, expressed the Federal Government’s approval of the Senate’s initiative, calling the move a “very beautiful idea”. He stressed the importance of the Senate achieving a consensus position that is “safe and acceptable for all stakeholders”, particularly by defining a proper balance between powers of the management team and that of the board.
Mr. Oluwaseun Faleye, Managing Director and CEO of the existing NSITF, applauded the Senate’s efforts, characterizing the legislative intervention as “strategic and forward-looking.” He noted that the new bill represents a crucial stride towards modernising Nigeria’s social security framework in line with global standards, specifically referencing the International Labour Organisation (ILO) Social Security (Minimum Standards) Convention, 1952 (No. 102), and the Tripartite Consultation Convention, 1976 (No. 144).
A pivotal feature of the legislation, according to Faleye, is the planned repeal of both the NSITF Act of 1993 and the ECA 2010. Their continued “co-existence,” he explained, had led to “operational ambiguities,” especially since the Pension Reform Act (PRA) 2014 shifted contributory pension duties away from NSITF to the National Pension Commission.
Faleye strongly affirmed: “The consolidation of the two Acts into a single, coherent statute is timely, necessary, and commendable. It eliminates duplication, resolves conflicts, and strengthens the legal framework of the Fund.” He further highlighted that the bill’s provision for expanding social security coverage to include informal sector workers and self-employed persons is a historic step towards inclusive protection for all categories of working Nigerians.
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Despite overall support, NSITF did raise concerns regarding the “misapplication” of the term Board throughout the proposed document. Faleye cautioned that using the term interchangeably for governance, oversight, and administrative functions could cause confusion and dilute accountability.
He clarified: “The board meets quarterly, while daily operations are under the Managing Director. The bill must distinguish clearly between the Governing Board as oversight body, management as administrators, and the agency as the implementing institution.” To resolve this, he advised adopting clearer definitions, similar to the separation of roles between the Board and the Executive Chairman (who acts as Chief Executive and Accounting Officer) in the Federal Inland Revenue Service (FIRS) Act.
Faleye concluded his remarks by reasserting NSITF’s complete backing for the bill’s passage, describing it as “progressive, timely, and aligned with global best practices.”
Initially, both the Nigeria Labour Congress (NLC) and the Nigerian Employers Consultative Association (NECA) had “kicked against the bill.” However, the NLC, led by its National President, Joe Ajaero, subsequently softened its opposition. Ajaero stated, “we are not here for we no go gree, we no gree,” indicating a shift from outright rejection. He noted the widespread support from other key parties: “Since many of the other critical stakeholders have supported the bill, NLC is not hellbent in opposing it. But the grey areas we identified during the presentation should be addressed by the committee.”