N2.1bn Workers Tax: CSO demands investigation of NSITF

The Civil Society Coalition Against Corruption has tasked the federal government with ensuring a clean-up of the Nigerian Social Insurance Trust Fund, NSITF, alleging procurement fraud at the agency.

The anti-corruption group, at a press conference, alleged the non-remittance of N2.1 billion in workers’ tax deductions at the Fund, illegal employment and appointment of a consultant to conduct a forensic investigation without due process.

Speaking on behalf of the coalition, Ayodeji Ologun of the Transparency and Accountability Group, TAG, alleged that the N2.1 tax deductions were removed from the workers’ salaries in 2022 but were never remitted to the Federal Inland Revenue Service, FIRS.

Ologun claimed that the funds were deducted in 2022 and invested with a company not approved by the board, instead of being remitted to the FIRS.

The coalition also alleged the illegal recruitment of over 477 persons between 2022 and 2023 without due process, saying the employment stagnated officers of the NSITF who were due for promotion.

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According to Ologun, the Coalition had, for two years, investigated the alleged issues, particularly, the administrative and procurement infractions and the non-remittance of taxes and believes it is morally obligated to call for an investigation

He said the Coalition has also petitioned the Economic and Financial Crimes Commission, EFCC, the Independent Corrupt Practices Commission, ICPC, and the Code of Conduct Bureau, CCB, to investigate the raised concerns.

”We call on both the EFCC and ICPC to ensure that these funds are not looted by people masquerading as lovers of the masses.

“We demand that these contractors be investigated thoroughly to ascertain whether they genuinely took contracts from the agency or are merely fronting for corrupt officials.

”We call on the President, Bola Tinubu, to intervene in the series of crises rocking the agency, which makes the union and management clash every day,” he said.

However, in a swift response to the allegations raised by the CSO coalition, the General Manager, Corporate Affairs at the NSITF, Nwachukwu Godson, said the allegations were a repeat of issues that have already been addressed or are undergoing investigation by the ICPC and EFCC.

In a statement released to journalists, the NSITF spokesperson said: “The so-called non-remittance of N2.1bn tax deductions is another hogwash. The truth is that the figure N2.1Bn itself exists only in the sick but fertile province of mischief. Recall that at a conciliation meeting between the domestic Chapter of ASSBIFI and the management of the Fund, summoned by the Permanent Secretary of the Ministry of Labour and Employment on 25th April 2024, the Executive Director of Finance, NSITF, Adegoke Adedeji, provided evidence that the current management has not only been faithful in remitting tax deductions but also the National Housing Fund.

“Also, the money invested in Norrenberger has nothing whatsoever to do with deducted taxes which anyway have been remitted to the appropriate tax body. It is rather funded from other sources that the management of the Fund wisely invested in line with section 31(b) of the ECA

“Similarly, though the appointment of a consultant to conduct forensic investigations was done by the previous Managing Director, the fact on the ground is that no dime has been paid to the consultant till today in that respect.

“In view of the above, we easily dismiss the allegations by the Transparency and Accountability Group as a tale told by an idiot, full of sound and fury, signifying nothing.”