The Federal Government has pledged to reverse deductions from the Employees’ Compensation Scheme (ECS), managed by the Nigeria Social Insurance Trust Fund (NSITF), to ease tensions with the Nigeria Labour Congress (NLC) following threats of a nationwide strike.
The NLC had accused the government of diverting 40% of workers’ compensation funds into the treasury, undermining social protection. NSITF Managing Director Oluwaseun Faleye confirmed deductions but said they stemmed from a December 2023 policy mandating government-owned enterprises to remit half of their internally generated revenue. He stressed that statutory employer contributions were no longer being deducted following a March 2024 directive from the Accountant-General and that refunds had begun.
The NLC, however, maintains the funds are not government revenue and insists that deductions compromise workers’ welfare. It also demanded the reconstitution of the National Pension Commission (PenCom) board, dissolved in June 2023, warning that the vacuum leaves pensions exposed to mismanagement.
While PenCom assures that pension assets remain intact, labour leaders are weighing strike action pending a review of NSITF’s letter. Business groups such as NECA backed NLC’s call for PenCom’s board reconstitution, arguing it is required by law and vital for regulatory credibility.
Despite assurances that workers’ funds are safe, the dispute underscores rising labour-government friction amid economic reforms, subsidy removal, and wage negotiations.
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