The Nigeria Social Insurance Trust Fund (NSITF) has strongly refuted recent allegations of financial misconduct involving its Managing Director/Chief Executive Officer, describing the claims as false, malicious, and part of a coordinated effort to discredit the institution’s ongoing reforms.
In a statement released in response to social media reports, the Fund assured Nigerian workers, employers, and the general public that all funds under its management remain secure, fully accounted for, and strictly administered in accordance with statutory and financial regulations governing public institutions.
“The NSITF categorically states that these allegations are false, malicious, and unsupported by verifiable facts. They appear to form part of a coordinated attempt to undermine the leadership of the Fund and the far-reaching reforms currently underway,” the statement said.
The Fund explained that its operations are guided by the Employees’ Compensation Act (ECA) 2010, along with relevant public finance, treasury, procurement, and audit regulations. It emphasized that monies in the Employees’ Compensation Fund are public trust funds subject to multiple layers of internal control, routine internal and external audits, oversight by the Management Board, and supervision by appropriate government authorities.
“At no point has the Managing Director/CEO operated, controlled, or accessed NSITF funds outside the approved institutional banking structure. All monies are held in official Fund accounts, and all disbursements undergo established financial controls involving multiple officers, departments, and approval stages,” the statement noted.
Addressing claims of multiple bank accounts linked to a single Bank Verification Number (BVN), NSITF clarified that BVN administration and account linkages are regulated by deposit money banks and the Central Bank of Nigeria, not individual discretion. The Fund stressed that the existence of multiple or dormant accounts does not indicate wrongdoing, and there is no evidence that NSITF funds were diverted into personal or third-party accounts.
The statement also dismissed claims that the Managing Director granted himself unlimited approval authority, calling such assertions misleading. It explained that approval thresholds within public institutions are dictated by statutory regulations and government circulars, and no officer can unilaterally override these controls.
“No internal approval framework can supersede statutory financial regulations or procurement laws. Claims that expenditures were made without Board approval reflect either a misunderstanding or deliberate misrepresentation of public financial administration,” the Fund said.
On vendor payments and commissions, NSITF emphasized that all engagements under the current administration comply strictly with the Public Procurement Act and related regulations, noting that payments are tied to services rendered, contractual obligations, and are subject to lawful audit and review processes.
Elijah Adeyemi
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