The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to immediately constitute the Boards of the Nigeria Social Insurance Trust Fund (NSITF) and the National Pension Commission (PENCOM), and others to ensure effective governance, transparency, and accountability in the management of employers’ contributions and workers pension funds.
The Association’s Director-General, Mr. Adewale-Smatt Oyerinde, made the call in Lagos, on Sunday.
He expressed deep concern over the prolonged delay in constituting these Boards, emphasizing that the absence of proper governance structures creates significant accountability concerns and uncertainty in the 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 the Pension funds to intended and unintended risks,†Oyerinde argued
The NECA boss added that the contributions to NSITF and PenCom are strictly employers’ funds, contributed for specific purposes, and not government’s, address that employers, and in deed workers, who make mandatory contributions to these schemes, are becoming increasingly agitated about the absence of governance structures to ensure judicious fund management.
Besides, Oyerinde described the development as a deviation from international best practices, contradicting the principles of good governance, upheld by global organizations such as the International Labour Organization (ILO).
He therefore warned that the continued failure to constitute those Boards contravenes statutory provisions, erodes public trust, and could compel employers to stop their contributions due to concerns over fund transparency and mismanagement.
Oyerinde further stressed that maintaining employers’ confidence in those institutions has become crucial to ensuring the financial security of Nigerian workers and retirees.
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