NSITF opens up on alleged graft

…*Describes corruption claims as coordinated attack, smear campaign

By Victor Ahiuma-Young

The management of the Nigeria Social Insurance Trust Fund, NSITF, has denied allegations of financial impropriety leveled against its Managing Director/Chief Executive Officer, describing the claims as false, malicious, and part of a coordinated smear campaign aimed at undermining ongoing reforms within the organisation.

In a statement issued in response to reports circulating in sections of the social media, the Fund assured Nigerian workers, employers, and the general public that all monies under its control remain safe, properly accounted for, and managed strictly in line with statutory and financial regulations governing public institutions.

“The NSITF categorically states that these allegations are false, malicious, and unsupported by verifiable facts, and appear to form part of a coordinated attempt to discredit the leadership of the Fund and undermine the far-reaching reforms currently underway,” the statement said.

The management explained that the NSITF operates under a clearly defined statutory and governance framework as provided by the Employees’ Compensation Act (ECA) 2010, as well as relevant public finance management, treasury, procurement, and audit regulations. It stressed that funds accruing to the Employees’ Compensation Fund are public trust funds subjected to multiple layers of internal control, routine internal and external audits, Management Board oversight, and supervision by appropriate government authorities.

“At no time has the Managing Director/Chief Executive Officer operated, controlled, or had access to NSITF funds outside the approved institutional banking structure of the Fund. All NSITF monies are held exclusively in official Fund accounts, and all disbursements pass through established financial controls involving multiple officers, departments, and approval stages,” the statement noted.

Addressing allegations of multiple bank accounts linked to a single Bank Verification Number (BVN), the Fund clarified that BVN administration and account linkages are regulated by deposit money banks and the Central Bank of Nigeria, not by individual discretion. It added that the existence of multiple or dormant accounts does not in itself suggest wrongdoing, noting that no evidence exists showing that NSITF funds were diverted into personal or third-party accounts.

The Fund also dismissed claims that its Managing Director granted himself unlimited approval authority, describing such assertions as misleading and a misrepresentation of public financial administration. According to the management, approval thresholds within public institutions are governed by statutory regulations and government circulars, and no individual officer can unilaterally override these controls.

“No internal approval framework can lawfully supersede statutory financial regulations or procurement laws. Claims that expenditures were made without Board approval reflect either a misunderstanding or a deliberate misrepresentation of how public financial systems operate,” the statement noted.

On vendor payments and commissions, NSITF maintained that all engagements under the current administration comply strictly with the Public Procurement Act and applicable regulations, adding that payments are tied to services rendered and contractual obligations, and are subject to lawful audit and review processes.

The Fund attributed the allegations to resistance from entrenched interests affected by its ongoing reforms, including automation, digitisation, recovery of long-standing debts, and efforts to strengthen governance and transparency.
“Experience has shown that when loopholes are closed, those who previously benefited from them often react loudly. This is corruption fighting back,” NSITF declared.

While insisting it would not be distracted by sensational narratives or trial by media, the Fund reaffirmed its commitment to transparency, accountability, and prudent management of the Employees’ Compensation Fund. It also welcomed any lawful and properly constituted inquiry by relevant oversight authorities.

The NSITF assured the public that claims under the Employees’ Compensation Scheme continue to be paid, statutory obligations are being met, and reforms aimed at strengthening social security and protecting Nigerian workers remain firmly on course.

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