Nigeria Social Insurance Trust Fund (NSITF) is one of the foremost social insurance organizations in Africa with a long history of service dating back to 1961.
NSITF started in 1961 as the National Provident Fund with the mandate to protect employees in the Nigerian private sector who were mostly in non-pensionable employment. Decree N0 73 of 1993 gave birth to the Nigeria Social Insurance Trust Fund as replacement for the national Provident Fund. NSITF ran a Defined Benefit Scheme for the Organized Private Sector that covered contingencies of old age, invalidity, survivor and emigration (for contributing members relocating permanently outside Nigeria).
NSITF transformed twice in July 1994 and in June 2004. The Federal Government introduced a new pension management scheme in 2004 with the Pension Reforms Act 2004. The Act consigned the administration and custody of pension funds to private sector companies as Pension Fund Administrators or Pension Fund Custodians. NSITF thus transferred pension assets worth about N60 billion ($382 million) to its subsidiary company, Trustfund Pensions Plc.
NSITF then began its advocacy for social security in Nigeria. Repeal of the obsolete Workman’s Compensation Act 1942, which it championed, led to the introduction of the Employee’s Compensation Act (ECA) 2010 and the Employee’s Compensation Scheme. NSITF is mandated under Part 1 section 2 (2) of the ECA 2010 to implement the Act as well as the Employee’s Compensation Fund (ECF) created under Section 56 of the Act. NSITF commenced implementation of the Employee’s Compensation Scheme in July 2011.