By Bimbola Oyesola, [email protected]

The employers’ body said the call was to ensure effective governance, transparency and accountability in the management of employer’s contributions and workers’ pension funds.

Speaking in Lagos at the weekend, NECA’s director-general, Mr. Adewale-Smatt Oyerinde, expressed concerns over the prolonged delay in constituting these boards, emphasizing that the absence of proper governance structures creates significant accountability concerns and uncertainty in the fund’s administration.

He said: “The NSITF Act of 1993 mandates the establishment of a board to provide oversight and policy direction in the administration of social insurance contributions.”

Similarly, Oyerinde said the Pension Reform Act (PRA) 2014 requires the PENCOM board to safeguard the integrity of the pension industry. Without these boards, there is a glaring governance gap that weakens regulatory oversight and exposes the NSITF and the pension funds to intended and unintended risks.

Mr. Adewale-Smatt Oyerinde also noted that “the contributions to NSITF and PenCom are not government income, they are strictly employer’s funds, contributed for specific purposes. Employers, and indeed workers, who make mandatory contributions to these schemes, are becoming increasingly concerned about the absence of governance structures to ensure judicious fund management.

“Moreover, this deviation from international best practices contradicts the principles of good governance upheld by global organizations such as the International Labour Organization (ILO), which stress the importance of effective governance in social security and pension management.”

The NECA boss warned that the continued failure to constitute these boards contravenes statutory provisions, erodes public trust, and could compel employers to stop their contributions due to concerns over fund transparency and mismanagement.

He further stressed that maintaining employer confidence in these institutions is crucial to ensuring the financial security of Nigerian workers and retirees.

Reiterating its stance, the DG urged the Federal Government to act swiftly in constituting the boards, in line with legal requirements.

“The business community remains committed to fulfilling its statutory obligations but expects the government to uphold principles of good governance and global best practices,” he added.