Madiba Advocates Raise Alarm, Urge Presidency, Labour Ministry, NSITF Management Board & relevant authorities to Probe Alleged ₦297bn NSITF Irregularities Linked to MD Faleye Oluwaseun

Madiba Advocates for Good Governance has criticised what it described as the continued silence of authorities over serious allegations of financial irregularities at the Nigeria Social Insurance Trust Fund (NSITF), calling on President Bola Ahmed Tinubu, the Honourable Minister of Labour and Employment, the NSITF Management Board, and other relevant agencies to urgently initiate a comprehensive investigation.

The group said the allegations, which have persisted in the public domain for weeks, involve the Managing Director/Chief Executive Officer of NSITF, Mr. Oluwaseun Mayomi Faleye, and have yet to receive any clear institutional response despite their gravity.

The call follows a series of petitions and public disclosures that have brought increased scrutiny to the management of the Fund, particularly in relation to financial transactions and governance processes within the institution. Madiba Advocates noted that the scale of the allegations and the sensitivity of the funds involved make immediate intervention both necessary and urgent.

At the centre of the controversy are allegations involving the management of approximately ₦297,019,145,288.60 in funds collected under the Employees’ Compensation Act (ECA) between January 2 and October 9, 2025.

The Employees’ Compensation Scheme is funded through mandatory employer contributions designed to provide compensation to Nigerian workers who suffer injury, disability, or death in the course of employment. Stakeholders have consistently emphasised that these funds are not government revenue, but trust funds belonging exclusively to Nigerian workers, requiring strict oversight and accountability.

₦243bn Allegedly Spent Without Board Approval

Documents referenced in the public domain indicate that out of the total inflow of ₦297 billion, an estimated ₦243,203,518,621.17 was expended within the same period. Sources allege that a significant portion of these expenditures may have been carried out without the approval of the NSITF Management Board, raising concerns about compliance with the NSITF Act and established financial regulations.

‘No Approval Limit’ Raises Governance Concerns

Central to the allegations is an internal document reportedly linked to a March 4, 2025 Executive Committee (EXCO) meeting, which outlined financial approval thresholds for officials. While limits were reportedly set for other officers, the Managing Director was allegedly assigned “no approval limit”, a development that has raised serious concerns about internal controls and governance safeguards.

Multiple Accounts and Financial Flow Allegations

Further reports allege the existence of over 100 bank accounts linked to a single Bank Verification Number (BVN), alongside financial inflows amounting to over $7.3 million and hundreds of millions of naira into accounts linked to the Managing Director and associated entities. Analysts note that such patterns, if verified, would require thorough scrutiny by relevant financial and regulatory authorities.

₦5.5bn Commission Payments Queried

Additional concerns have been raised over alleged commission payments totalling ₦5.53 billion, reportedly made without clear evidence of requisite approvals from the Board or the supervising Ministry. The payments are said to range between 15 and 20 per cent commissions and were allegedly executed outside standard procedures.

Governance Gap Raises Further Questions

Observers have also pointed to a governance gap between July 2023, when the Managing Director was appointed, and January 2025, when the Management Board was reportedly constituted, raising concerns about the level of oversight during that period.

Madiba Advocates for Good Governance stated that the issues have now reached a critical point, requiring decisive action from all relevant authorities to ensure transparency and accountability in the management of the Fund.

Call for Urgent Investigation

Reacting to the development, Madiba Advocates for Good Governance, led by its Executive Director, Alhassan Kabiru, expressed concern over the prolonged delay in addressing the allegations and the absence of a coordinated institutional response.

The group called on:
• The Chairman of the NSITF Management Board,
• The Honourable Minister of Labour and Employment,
• Relevant regulatory and anti-corruption agencies, and
• President Bola Ahmed Tinubu

to urgently intervene and ensure a thorough and independent investigation into the matter.

“This matter has lingered in the public space without clarity. It is important that the appropriate authorities take decisive steps to investigate and establish the facts,” the group stated.

Madiba Advocates emphasized that transparency in handling the allegations is essential to restoring confidence in public institutions and safeguarding workers’ funds.

Responses and Presumption of Innocence

When contacted, Mr. Faleye reportedly stated that he was not aware of the allegations. Officials of the Ministry of Labour were also said to have denied prior knowledge of the claims, while the NSITF Management Board indicated that the issues would be verified.

All allegations remain unproven and subject to investigation.

A Test of Accountability

Analysts say the situation presents a significant test of Nigeria’s public finance accountability framework, particularly for institutions entrusted with workers’ welfare.

Madiba Advocates for Good Governance warned that the continued delay in addressing these allegations risks sending the wrong signal about accountability within public institutions. The organisation urged the Presidency, the Ministry of Labour, and the NSITF Management Board to act without further delay to investigate the issues and restore confidence in the system. It added that failure to act decisively could further erode public trust and undermine the Federal Government’s Renewed Hope Agenda on transparency, accountability, and good governance.

Madiba Advocates Raise Alarm, Urge Presidency, Labour Ministry, NSITF Management Board & relevant authorities to Probe Alleged ₦297bn NSITF Irregularities Linked to MD Faleye Oluwaseun