NSITF dismisses allegations against Managing Director, says claims are false, malicious

The Nigeria Social Insurance Trust Fund (NSITF) has strongly denied allegations of financial misconduct and abuse of office levelled against its Managing Director/Chief Executive Officer, describing the claims as false, malicious, and part of a coordinated smear campaign.

In a statement issued by its management, the Fund said it had become aware of media reports accusing its chief executive of diverting funds, engaging in financial impropriety, and bypassing due process in the handling of the organisation’s finances.

However, the agency insisted that the accusations lack any verifiable evidence and are aimed at undermining the leadership and ongoing reforms within the institution.

According to the NSITF, its operations are guided by strict statutory and financial regulations under the Employees’ Compensation Act (ECA) 2010, as well as public finance management laws and government procurement rules. The Fund noted that all monies under its control are treated as public trust funds and are subject to multiple layers of oversight, including internal controls, routine audits, board supervision, and government monitoring.

The management stressed that the Managing Director does not personally control or access NSITF funds outside the official banking system. It known that all transactions pass through approved institutional accounts and must go through several officers, departments, and approval stages before disbursement.

“It is categorically false to suggest that any funds were diverted into personal or non-official accounts,” the statement said.

Addressing reports about multiple bank accounts linked to a single Bank Verification Number (BVN), the Fund explained that such matters are regulated by banks and the Central Bank of Nigeria, not individuals. It added that many of the accounts referenced are dormant or inactive and do not indicate wrongdoing.

The NSITF also rejected claims that its chief executive granted himself “unlimited approval authority,” describing the suggestion as misleading. It clarified that all spending decisions in public institutions are governed by strict financial thresholds, procurement laws, and board oversight, which no single officer can override.

On allegations relating to vendor payments and commissions, the organisation maintained that all contracts and payments are handled in line with the Public Procurement Act and tied strictly to services rendered and statutory obligations.

Management linked the allegations to resistance from vested interests threatened by reforms being implemented at the agency. These reforms, it said, include digitisation of operations, automation of processes, and recovery of long-standing debts — measures aimed at improving efficiency and transparency.

The Fund argued that such changes have disrupted entrenched practices, prompting pushback from those who previously benefited from loopholes.

Despite the controversy, the NSITF reassured Nigerian workers and employers that the Employees’ Compensation Fund remains secure and fully operational. It added that claims are still being processed and paid without interruption.

The organisation also expressed readiness to cooperate with any lawful investigation by relevant authorities, reiterating its commitment to transparency, accountability, and prudent fund management.

“We will not be distracted by sensational claims,” the statement noted, assuring stakeholders that the integrity of the compensation scheme remains intact.