Chairman of the Management Board of the Nigeria Social Insurance Trust Fund (NSITF), Honourable Sola Olofin has stressed the need to safeguard the Fund's independence in the face of regulatory overreach.
The Board Chairman spoke in his welcome address at the 69th Board meeting and third in the life of the current Board which held at the Transcorp Hilton Hotel, Abuja, Monday to Tuesday, Honourable Olaofin hinged his concern on the ambiguity in the Finance Act 2021 on the status of contributions to the Fund.
He said "The Financial Act 2021 has introduced changes with significant implications for NSITF Of particular note is the conversation around whether contributions made to the Fund should be classified as revenue within the purview of the Federal Inland Revenue Service."
He argued that "This is not merely an accounting classification, it is matter with far-reaching effects on the autonomy, operations and the financial health of the Fund."
The Chairman proceeded to rally the Board to support the barrister Oluwaseun Faleye-led Management to strengthen the Fund's policy stance on the Financial Act 2021 and contributions classification.
"As a Board, we have the duty to engage actively on this front -- to ensure that our position is clearly articulated and that the peculiar nature of NSITF's contributions, which are statutory and earmarked for specific social security objectives, is fully appreciated by policymakers and tax authorities." He said.
He stressed that, "We must continue our advocacy, backed by sound legal and policy arguments to safeguard the Fund from regulatory overreach that may impair it's ability to meet it's statutory obligations."
Welcoming members, Honourable Olaofin said the meeting "not only a statutory requirement but a demonstration of our collective commitment to stewarding this Fund in accordance with our fiduciary duties, the enabling acts, and the trust reposed in us by the President of the Federal Republic of Nigeria, the Honourable Minister of Labour and Employment, and indeed, the Nigerian workers we serve."