The Management Board of the Nigeria Social Insurance Trust Fund (NSITF) has raised concerns over the ambiguity in the Finance Act 2021 on the status of contributions to the Fund.

The board also stressed the need to safeguard the Fund’s independence in the face of regulatory overreach.

Chairman of the board, Hon. Sola Olofin, raised the concerns at the 69th meeting of the board, at the Transcorp Hilton Hotel, Abuja.

Odofin 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.

“This is not merely an accounting classification, it is a matter with far-reaching effects on the autonomy, operations and the financial health of the Fund,” he said.

The Chairman underscored the need for the Board to support the NSITF 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 on the peculiar nature of NSITF’s contributions.

“The contributions are statutory and earmarked for specific social security objectives

“This must be fully appreciated by policymakers and tax authorities.

“We must continue our advocacy, backed by sound legal and policy arguments to safeguard the Fund from regulatory overreach that may impair its ability to meet its statutory obligations,” he said.

Olofin said the board meeting is not only statutory, but a demonstration of the members’ collective commitment to stewardship