FG Pushes NSITF Levy Increase as Employers Warn of Mass Job Losses, Economic Strain"

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This clash comes amid other labour-related developments, such as the FG's recent approval of a 40% salary increase for university lecturers (effective January 2026) and ongoing discussions on tax reforms, minimum wage negotiations (next round eyed for 2027), and social protection gaps. NECA has aligned with labour unions in rejecting earlier proposed amendments to the NSITF Act that could have similar cost implications. Employers emphasize prioritizing workplace safety and compliance rewards over levy increases.


Government/NSITF: Focus on overhauling social protection, fast-tracking benefits, and ensuring sustainable funding for injured workers and families.

OPS/NECA: Committed to decent wages/jobs but view additional levies as stifling amid economic pressures.

Government officials, including from the Ministry of Labour and Employment and NSITF, have renewed calls for a review and potential increase in the levy rate. This was highlighted during the Safe Workplace Intervention Project (SWIP) annual stakeholders’ engagement forum and awards ceremony in Lagos (around mid-January 2026). The push aims to strengthen the fund's capacity to provide better coverage, faster claim payments, and broader social protection, especially given low compliance and coverage in Nigeria's informal-heavy economy.

OPS Opposition: The Organised Private Sector, led by NECA, has strongly opposed any hike. They argue it would:

Increase operational costs for businesses already burdened by high taxes, multiple levies/fees (over 90 in some estimates), economic hardships, inflation, and forex challenges.

Lead to job losses, reduced hiring, or business closures.

Make Nigeria less attractive for investment and global expertise.

Contradict efforts to grow the private sector and create jobs.

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