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), among others.
Mr Adewale-Smatt Oyerinde, NECA’s Director-General, made the call in a statement on Monday in Abuja.
Oyerinde said the constitution of the boards would ensure effective governance, transparency, and accountability in the management of employer’s contributions and workers’ pension funds.
He expressed deep concern over the prolonged delay in constituting the boards, emphasising 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 said.
The NECA boss said that the contributions to NSITF and PenCom were not government income, but strictly employer’s funds, contributed for specific purposes.
He added that the employers, and indeed workers, who made mandatory contributions to the schemes, were becoming increasingly concerned about the absence of governance structures to ensure judicious 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 stress the importance of effective governance in social security and pension management, ” he said.
Oyerinde also said that the continued failure to constitute the boards erodes public trust, and can compel employers to stop their contributions due to concerns over fund transparency and mismanagement.
He further stressed that maintaining employer confidence in the institutions is crucial 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.
