Tensions eased between workers and the Federal Government as officials pledged to reverse deductions from the Employees’ Compensation Scheme.
The Nigeria Labour Congress (NLC) had warned of a nationwide strike, accusing the government of tapping funds meant to protect injured or deceased employees.
Workers Demand Refunds
Workers accused the government of diverting 40% of their contributions into the Treasury, undermining a fund meant to protect those injured, ill, or killed at work.
Consequently, the union demanded an immediate refund and warned that failure to comply could trigger industrial action across the country.
In response, NSITF Managing Director Oluwaseun Faleye wrote a letter on August 16, 2025, acknowledging the deductions but denying any misappropriation.
He explained that the Ministry of Finance had issued a December 2023 directive requiring state-owned enterprises to remit half of their internally generated revenue.
Faleye also assured workers that the Accountant-General’s March 2024 order had stopped any impact on employer contributions—the lifeblood of the scheme.
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Furthermore, the NSITF has already refunded some of the previously deducted sums, and both the Finance Ministry and the Budget Office have pledged to prevent future withdrawals.
Union Raises Broader Concerns
“The contributions to NSITF are not government revenue.
They are meant to safeguard workers and should not be touched,” said NLC Assistant General Secretary Christopher Onyeka.
While welcoming this assurance, the union added that its executive council would review the letter before deciding whether to suspend the planned strike.
Moreover, the union voiced broader concerns about government interference, including its failure to reconstitute the Governing Board of the National Pension Commission (PenCom), which the NLC says leaves pension funds vulnerable to political influence.
The Employees’ Compensation Scheme, fully funded by employers, provides financial support to workers who suffer injury, disability, or death on the job.
Critics argue that the Finance Ministry wrongly classified NSITF as a revenue-generating agency, ignoring its tripartite structure and sparking this latest clash with labour.
