The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to immediately constitute the boards of the Nigeria Social Insurance Trust Fund (NSITF) and the National Pension Commission (PENCOM), among others.
Mr. Adewale-Smatt Oyerinde, NECA’s Director-General, made the call in a statement issued on Monday in Abuja.
Oyerinde emphasised that the establishment of these boards is essential for effective governance, transparency, and accountability in the management of employers’ contributions and workers’ pension funds.
He expressed deep concern over the prolonged delay in their constitution, stating that the absence of proper governance structures raises significant accountability concerns and creates uncertainty in fund administration.
“The NSITF Act of 1993 mandates the establishment of a board to provide oversight and policy direction in the administration of social insurance contributions.
“Similarly, the Pension Reform Act (PRA) 2014 requires the PENCOM board to safeguard the integrity of the pension industry.
“Without these boards, there is a glaring governance gap that weakens regulatory oversight and exposes the NSITF and pension funds to both intended and unintended risks,” Oyerinde stated.
The NECA chief stressed that contributions to the NSITF and PENCOM are not government revenue but strictly employers’ funds meant for specific purposes.
He noted that both employers and workers, who make mandatory contributions to these schemes, are increasingly concerned about the absence of governance structures to ensure proper fund management.
“This deviation from international best practices contradicts the principles of good governance upheld by global organisations such as the International Labour Organisation (ILO).
“This underscores the importance of effective governance in social security and pension management,” he said.
Oyerinde warned that the continued failure to constitute the boards erodes public trust and could compel employers to halt their contributions due to concerns about transparency and fund mismanagement.
He further stressed that maintaining employer confidence in these institutions is critical to ensuring the financial security of Nigerian workers and retirees.
Oyerinde urged the Federal Government to act swiftly in constituting the boards in line with legal requirements.
