The Nigeria Social Insurance Trust Fund (NSITF) has strongly refuted allegations of financial impropriety, abuse of office and diversion of funds leveled 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 it had noted with concern a publication circulating in sections of the media accusing its chief executive of wrongdoing.
The NSITF maintained that the allegations were part of a coordinated attempt to discredit its leadership and derail ongoing reforms within the organisation.
The Fund stressed that it operates within a clearly defined statutory and governance framework under the Employees’ Compensation Act (ECA), 2010, as well as other public finance management laws, treasury regulations and procurement guidelines of the Federal Government.
According to the statement, all monies accruing to the Employees’ Compensation Fund are public trust funds subject to multilayered internal controls, routine internal and external audits, Management Board oversight and supervision by relevant 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,” the statement said.
It explained that NSITF funds are held strictly in official accounts and that all disbursements pass through established financial control mechanisms involving multiple officers, departments and approval stages. The Fund described as “categorically false” any suggestion that its resources were diverted into personal or third-party accounts.
Reacting to claims of multiple bank accounts linked to a single Bank Verification Number (BVN), the NSITF clarified that BVN linkage and account administration are regulated by deposit money banks and the Central Bank of Nigeria, not by individuals.
It added that the existence of multiple accounts, including dormant or “Post-No-Debit” accounts, does not amount to evidence of wrongdoing, especially in the absence of proof that NSITF funds were paid into any personal account.
On allegations that the Managing Director granted himself “unlimited approval authority,” the Fund said internal approval frameworks in public institutions operate strictly within statutory financial regulations, procurement laws and Board oversight, and cannot override government-prescribed thresholds.
The NSITF further dismissed claims that expenditures were made without Board approval, noting that while the Board provides policy direction and approves annual budgets, operational expenses are governed by statutory and regulatory thresholds.
It maintained that comprehensive documentation of approvals and mandates are available for review by authorised oversight bodies.
Addressing concerns over vendor payments and commissions, the Fund said all engagements under the current administration comply strictly with the Public Procurement Act and relevant regulations, with payments tied to contractual obligations and services rendered.
The NSITF attributed the allegations to resistance against its ongoing reforms, including automation, digitisation of operations, recovery of long-standing debts and institutional restructuring.
“The NSITF will not be distracted by sponsored mudslinging or sensational narratives designed to undermine public confidence. Our focus remains firmly on our mandate, paying claims faster, expanding the social protection safety net for Nigerian workers, strengthening governance, and delivering on the Renewed Hope Agenda of Mr President.
“We assure the public unequivocally:The NSITF is safe. The funds are secure.
Management remains fully committed to transparency, accountability, and the prudent management of the Employees’ Compensation Fund. The NSITF welcomes any lawful, independent, and properly constituted inquiry by relevant oversight authorities and will continue to cooperate fully with all statutory review processes.
“Finally, the NSITF assures Nigerian workers, employers, and the general public that the integrity of the Employees’ Compensation Scheme remains intact. Claims continue to be paid, statutory obligations are being met, and the Fund remains focused, without distraction, on protecting workers and strengthening social security in Nigeria,” the Fund stated.
The sun
