NSITF dismisses allegations against MD, says claims are false, malicious

The Nigeria Social Insurance Trust Fund (NSITF) has strongly refuted allegations of financial impropriety, abuse of office and diversion of funds levelled against its Managing Director/Chief Executive Officer, describing the claims as false, malicious and lacking credible evidence.

In a statement issued by its management, the Fund said the allegations, currently circulating in sections of the media, appear to be part of a coordinated attempt to tarnish the image of its leadership and undermine ongoing institutional reforms.

According to the NSITF, the Fund operates strictly within the statutory framework of the Employees’ Compensation Act (ECA) 2010, as well as established public finance management laws, treasury guidelines, procurement rules and audit regulations of the Federal Republic of Nigeria.

The management emphasised that all monies accruing to the Employees’ Compensation Fund are public trust funds, subject to multilayered internal controls, routine internal and external audits, oversight by its Management Board, and supervision by relevant government authorities.

“At no time has the Managing Director/Chief Executive Officer operated, controlled or accessed NSITF funds outside the approved institutional banking structure of the Fund,” the statement said.

The Fund maintained that its accounts are domiciled strictly in official institutional banking channels and that all disbursements pass through established financial controls involving multiple officers, departments and approval stages. It dismissed suggestions that funds were diverted into personal or third-party accounts as categorically false.

Addressing claims about the operation of multiple bank accounts linked to a single Bank Verification Number (BVN), the NSITF noted that BVN linkage and account administration are regulated by deposit money banks and the Central Bank of Nigeria. It stressed that the existence of multiple accounts — including dormant or “Post-No-Debit” accounts — does not amount to evidence of wrongdoing.

The Fund further denied allegations that the Managing Director granted himself “unlimited approval authority,” describing the claim as misleading. It explained that internal approval frameworks in public institutions operate within statutory financial regulations, procurement laws and board oversight, and cannot override thresholds prescribed by government circulars.

On allegations that certain expenditures were made without board approval, the NSITF clarified that while boards approve policy direction and annual budgets, operational expenditures are guided by statutory thresholds and established administrative procedures. It said comprehensive documentation of approvals and supporting records is available for review by authorised oversight bodies.

Concerning vendor payments and commissions, the management stated that all engagements under the current administration comply strictly with the Public Procurement Act and applicable regulations, adding that any concerns should be addressed through lawful audit and review mechanisms rather than “trial by media.”

The Fund acknowledged that its ongoing reforms — including automation of operations, debt recovery initiatives and institutional restructuring — may have unsettled vested interests.

“Experience shows that when loopholes are closed, those who previously benefited from them often react loudly. Unfortunately, this is how resistance to reform frequently manifests,” the statement read, adding pointedly, “This is corruption fighting back.”

Reaffirming its commitment to transparency and accountability, the NSITF assured Nigerian workers, employers and the general public that the Employees’ Compensation Scheme remains intact and functional.

“The NSITF is safe. The funds are secure,” the management declared.

The Fund also welcomed any lawful and properly constituted inquiry by relevant oversight authorities, pledging full cooperation with statutory review processes.

It concluded by assuring stakeholders that claims are being paid, statutory obligations are being met, and the Fund remains focused on strengthening social security protections for Nigerian workers.