NSITF board chairman raises concerns over finance act

The management board of the Nigeria Social Insurance Trust Fund (NSITF) has raised concerns over what it describes as ambiguity in the Finance Act 2021 concerning the status of contributions made to the fund.

The chairman of the board, Hon. Sola Olofin, stressed the need to safeguard the fund’s independence from regulatory overreach. He raised the concerns during the 69th board meeting at the Transcorp Hilton Hotel, Abuja.

Olofin said the Finance Act 2021 has introduced changes with major implications for the NSITF. He noted the key issue is the debate over whether the contributions should be classified as revenue, which would bring them under the control of the Federal Inland Revenue Service (FIRS). The board is now advocating for clarity to protect the fund’s autonomy and its core social security objective.

“This is not merely an accounting classification, it is a matter with far-reaching effects on the autonomy, operations and the financial health of the Fund,” he said.

The Chairman underscored the need for the Board to support the NSITF Management, to strengthen the Fund’s policy stance on the Financial Act 2021 and contributions classification.

“As a Board, we have the duty to engage actively on this front — to ensure that our position is clearly articulated on the peculiar nature of NSITF’s contributions.

“The contributions are statutory and earmarked for specific social security objectives

“This must be fully appreciated by policymakers and tax authorities.

“We must continue our advocacy, backed by sound legal and policy arguments to safeguard the Fund from regulatory overreach that may impair its ability to meet its statutory obligations,” he said.

Olofin said the board meeting is not only statutory, but a demonstration of the members’ collective commitment to stewardship.