FG Bows Amidst NLC’s Threat To Embark On Strike Over Workers Compensation

The Nigerian government faced pressure from the Nigeria Labour Congress (NLC) threatening a strike over the diversion of 40% of the Nigeria Social Insurance Trust Fund (NSITF) contributions to the treasury. The NLC demanded a refund and the reconstitution of the National Pension Commission board to avoid industrial action.

The Employees Compensation Scheme, funded by employer contributions, provides financial support to workers in case of injury, illness, disability, or death. The NSITF admitted to the diversion, citing a federal policy introduced in December 2023 to boost revenue.

The agency stated that the deduction has been reversed, and they are working with government officials to resolve the issue. The NLC acknowledged receipt of the NSITF's letter and is reviewing it before deciding on a proposed strike.

NSITF denied allegations of seeking to weaken worker rights through proposed amendments to the Employees Compensation Act, stating that the changes aim to improve enforcement and protect workers.