Nigerian Social Trust Fund Backs Bill To Remove ‘Insurance’ From Name

Managing director/chief executive of the Nigerian Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, has supported the proposed removal of the term ‘Insurance’ from the fund’s name because it impedes the acceptance of the Employees’ Compensation Scheme.

He said the removal of the term ‘Insurance’ reflects stakeholder feedback gathered over several years, adding that in many cultural settings, the term impeded acceptance of the Employees’ Compensation Scheme”.

Faleye stated this in a memorandum presented at the public hearing on the enactment of the Nigeria Social Insurance Trust Fund Bill, 2025, at the National Assembly, Abuja.
“The new name also positions the Fund to administer additional ILO-recognised contingencies of social security should Nigeria domesticate those areas in the future”, he stated.

The MD noted that the Nigeria Social Security Trust Fund Bill, 2025, marks a new dawn for workers, employers, and Nigeria’s social protection system.

“Following the enactment of the Pension Reform Act (PRA), 2014, significant elements of the Nigeria Social Insurance Trust Fund mandate under the NSITF Act, such as the contributory pension, were transferred to the National Pension Commission.

“However, Sections 84(2) and (3) of the PRA 2014 clearly provide that the NSITF shall continue to deliver social security insurance services, excluding pensions, to all eligible Nigerian citizens and legally resident workers, in accordance with the NSITF Act.

“This legal framework led to the enactment of the Employees’ Compensation Act (ECA), 2010, which vested NSITF with full responsibility for administering the Employees’ Compensation Scheme”, he disclosed.

Faleye said in the course of implementing both the NSITF Act and the ECA, the Fund identified several challenges and operational bottlenecks that hindered efficient service delivery.

He noted that the proposed bill adequately addressed many of the longstanding challenges. “It aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, the ILO Social Security (Minimum Standards) Convention, 1952 (No. 102), the Tripartite Consultation Convention, 1976 (No. 144), as well as global best practices”.

On the repeal of the NSITF Act 1993 and the ECA 2010, the MD explained that “the co-existence of the two Acts has generated conflicting provisions and operational ambiguities, especially when interfaced with the PRA 2014.

“The consolidation of both Acts into a single, coherent statute, the Nigeria Social Security Trust Fund Act, is timely, necessary, and commendable. This harmonisation eliminates duplication, resolves conflicts, and strengthens the legal framework of the Fund”, he stated.

Faleye specifically welcomed “Electronic submission of compensation claims to reduce delays and improve efficiency (Section 23(8)); inclusion of the informal sector and self-employed persons, ensuring broader social protection coverage (Section 20);

“Recognition of multiple spouses in line with cultural realities (Section 35); authority to create trust accounts for minors who are dependents (Section 35(14)); recognition of trado-medical practitioners in treatment processes (Section 23(4d))”.