NLC Alleges FG Diverted 40% of NSITF Funds, Issues 7-Day Strike Ultimatum

The Nigeria Labour Congress (NLC) has accused the Federal Government of diverting 40 percent of the contributions to the Nigeria Social Insurance Trust Fund (NSITF), threatening to embark on a nationwide strike if the alleged practice is not stopped within seven days.

NLC President, Joe Ajaero, disclosed the allegations during a press briefing in Abuja on Tuesday, warning that the Congress would mobilise its affiliates across the country for industrial action if the government failed to address what it described as “a brazen act of misappropriation.”

According to the NLC, the diversion of funds contravenes the Employees’ Compensation Act, which mandates that contributions from employers in the public and private sectors to the NSITF must be used exclusively for compensating workers who suffer injuries, disabilities, or death in the course of their duties.

Ajaero alleged that instead of channeling the funds to support injured workers and their families, the government has been systematically deducting and redirecting 40 percent of the NSITF’s internally generated revenue to the Federation Account under a Treasury Single Account (TSA) policy directive.

“This is a direct attack on Nigerian workers, especially those who depend on the Employees’ Compensation Scheme for survival after workplace accidents,” Ajaero stated. “We cannot stand by while funds meant for injured and disabled workers are siphoned off to unrelated uses. If within seven days this policy is not reversed, we will have no choice but to shut down the country.”

The NLC president argued that the practice has crippled the NSITF’s ability to fulfil its statutory responsibilities, leaving many injured workers and bereaved families without the financial support they are legally entitled to. He said the Congress had written several letters to relevant ministries, including the Ministry of Finance and the Ministry of Labour and Employment, but received no satisfactory response.

Workers in various sectors have also expressed outrage over the alleged diversion. Representatives from the Nigeria Union of Teachers (NUT), National Union of Road Transport Workers (NURTW), and the Medical and Health Workers’ Union of Nigeria (MHWUN) who attended the briefing pledged full support for the NLC’s planned strike.

Ajaero emphasised that the NSITF operates as a social insurance scheme and not a revenue-generating agency for the government. He warned that the diversion of its funds not only breaches the law but also undermines social protection mechanisms for Nigerian workers.

Labour analysts note that the NSITF plays a critical role in providing financial compensation, rehabilitation, and other benefits to employees who suffer workplace injuries or occupational diseases. They warn that continuous depletion of its resources could push many victims into poverty, especially in high-risk sectors like construction, manufacturing, and transportation.

The NLC’s ultimatum is the latest in a series of confrontations between organised labour and the Federal Government over workers’ welfare. In recent months, the Congress has staged protests and threatened strikes over issues ranging from minimum wage adjustments to fuel subsidy removal and power tariff hikes.

Reacting to the allegations, a senior official from the Ministry of Finance, who requested anonymity, said the deductions from NSITF accounts were part of a broader fiscal consolidation strategy aimed at shoring up government revenues. The official argued that all government-owned agencies are required to remit a percentage of their internally generated revenue to the central treasury, but declined to comment on whether the policy should apply to social insurance funds.

Meanwhile, the Ministry of Labour and Employment has said it will engage with the NLC to resolve the issue amicably. In a brief statement, the ministry’s spokesperson, Charles Akpan, noted that discussions were already underway to examine the legal and operational implications of the remittance policy on the NSITF.

However, Ajaero insists that the Congress will not accept negotiations that do not lead to a complete reversal of the policy. “Our demand is simple—stop taking money from the NSITF. These funds belong to Nigerian workers and must be used solely for their benefit. Anything short of that is unacceptable,” he stressed.

If the NLC proceeds with its strike threat, it could paralyse critical sectors of the economy, including transportation, education, healthcare, and banking. Many state chapters of the NLC have already begun mobilising members, while affiliate unions are preparing strike logistics in anticipation of a deadlock.

The NSITF management has not issued an official statement on the controversy, but insiders suggest that the fund has been grappling with liquidity challenges due to the remittances, which have affected its ability to process claims promptly.

As the seven-day countdown begins, all eyes are on the Federal Government to see whether it will yield to labour’s demands or risk a nationwide shutdown.