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.
NECA’s Director-General, Mr Adewale-Smatt Oyerinde, who made the call in a statement in Abuja yesterday, 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 create 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 NSITF and pension funds to intended and unintended risks,” Oyerinde said.
The NECA boss said the contributions to NSITF and PenCom are not government income, but strictly employer’s funds, contributed for specific purposes.
He added that workers who made mandatory contributions to the schemes, are 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 stresses the importance of effective governance in social security and pension management,” he said.
Oyerinde also said 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 stressed that maintaining employer confidence in the institutions is crucial in 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.
